Results 26 to 46 of 46
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04-04-2019, 01:50 PM #26
- Join Date
- Mar 2016
- Posts
- 908
I personally believe commissions should only be clawed back in Fraud cases when a merchant steals the capital and stops payment on the funder within the first week. That's clearly malicious and im sure a broker would understand that. Although the majority of ISO Agreements have some form of Clawback clause in them, im not a fan of taking an ISO's commission back and have only done so twice in the last 3 years.
Thank you,
Lior Monus
Business Development Manager
CFG Merchant Solutions
Direct: (646) 880-6764
Cell: (516) 319-5826
Fax: (646) 278-7322
Lmonus@cfgms.com
180 Maiden Lane New York, NY 10038
www.cfgmerchantsolutions.com
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04-04-2019, 01:57 PM #27
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,502
Putting my investment banker hat back on..... Over the years I did many deals up and down the balance sheet. A lot of them were with great companies that I knew would benefit greatly partnering with the capital source I brought them to. In such instances I usually structured my pay based on the performance of the company. Small amount up front and payments annually based on performance and in most cases warrants on the back end(equity deals or mezz deals).
In all cases I demanded quarterly earnings reports from the client. My agreement was always with the client not the source of capital.
So....if any of my compensation is being based on performance....you cool believe I want some proof of the activity.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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04-04-2019, 02:18 PM #28
- Join Date
- Oct 2016
- Posts
- 4,318
Amazing how many people get played into thinking they’re working with a funder when in fact they’re working with a broker pretending to be one. 99% of the time they could have figured it out with basic research.
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04-04-2019, 02:25 PM #29
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,502
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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04-04-2019, 02:27 PM #30
- Join Date
- Mar 2016
- Posts
- 657
So, I'm curious, if you fund a merchant and then they default pre30 days and it gets back to you (from the merchant or however) that the broker is the one who carroted the merchant to take your deal and promised a LOC or some other non-existent loan to the merchant with good payment history after 10 payments, what would you do? what's your thought process?
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04-04-2019, 02:30 PM #31
- Join Date
- Aug 2016
- Posts
- 831
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04-04-2019, 02:43 PM #32
- Join Date
- Jan 2018
- Posts
- 519
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04-04-2019, 03:14 PM #33
- Join Date
- Aug 2016
- Posts
- 831
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04-04-2019, 04:03 PM #34
- Join Date
- Mar 2016
- Posts
- 908
Thank you,
Lior Monus
Business Development Manager
CFG Merchant Solutions
Direct: (646) 880-6764
Cell: (516) 319-5826
Fax: (646) 278-7322
Lmonus@cfgms.com
180 Maiden Lane New York, NY 10038
www.cfgmerchantsolutions.com
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04-04-2019, 04:05 PM #35
- Join Date
- Mar 2016
- Posts
- 908
Thank you,
Lior Monus
Business Development Manager
CFG Merchant Solutions
Direct: (646) 880-6764
Cell: (516) 319-5826
Fax: (646) 278-7322
Lmonus@cfgms.com
180 Maiden Lane New York, NY 10038
www.cfgmerchantsolutions.com
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04-04-2019, 04:13 PM #36
- Join Date
- Feb 2017
- Posts
- 3,456
I think everyone is assuming that something actually happened based on the title of the thread.
The OP is just asking, "Is this standard?" The answer is "yes."
And we're just all noticing that he's submitting to a broker. Which is fine, especially if he's just starting out and he doesn't want to get messed over from the funders by being backdoored. It's not worse than working for someone....
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04-04-2019, 04:26 PM #37
- Join Date
- Mar 2016
- Posts
- 657
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04-04-2019, 04:58 PM #38
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04-04-2019, 05:01 PM #39
- Join Date
- Mar 2016
- Posts
- 908
Thank you,
Lior Monus
Business Development Manager
CFG Merchant Solutions
Direct: (646) 880-6764
Cell: (516) 319-5826
Fax: (646) 278-7322
Lmonus@cfgms.com
180 Maiden Lane New York, NY 10038
www.cfgmerchantsolutions.com
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04-04-2019, 05:08 PM #40
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04-04-2019, 05:15 PM #41
- Join Date
- Mar 2016
- Posts
- 908
Thank you,
Lior Monus
Business Development Manager
CFG Merchant Solutions
Direct: (646) 880-6764
Cell: (516) 319-5826
Fax: (646) 278-7322
Lmonus@cfgms.com
180 Maiden Lane New York, NY 10038
www.cfgmerchantsolutions.com
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04-04-2019, 06:07 PM #42
- Join Date
- Jul 2014
- Posts
- 92
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04-05-2019, 03:46 PM #43
- Join Date
- Feb 2019
- Location
- New York
- Posts
- 7
You guys are great, thank you for sharing your experience and your knowledge with me.
I did not sign up with that company, because as I said I don’t agree with there being a claw back. There were some other things said that turned me off to working with them that I didn’t mention, but the claw back really did it. I do understand, thanks to you guys, that I will more than likely run into that on quite a few contracts.
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04-05-2019, 03:50 PM #44
- Join Date
- Jan 2018
- Posts
- 519
commission clawback is a ***** though because most people don't bank on funding merchants that are going to default and funders capital is expensive for a reason. Funders have top of the line collections departments for a reason as well.
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04-07-2019, 11:16 PM #45
- Join Date
- Oct 2015
- Posts
- 30
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04-09-2019, 01:23 PM #46
- Join Date
- Jan 2014
- Posts
- 1,378
claw backs are standard usually 30 days some 45 days. If merchant missed a payment and got back on track I don't agree with commissions being clawed back or if they do default and lender still collects full payment even if it takes longer I don't think commission should be clawed back since they got their money. Being standard is usually 30-45 days claw back period, for an ISO to promise xyz after 10 days is just stupid on the ISO's part and lender should definitely cut them off.
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