I am often asked if I were to buy a funding company and price were no object, who would be on my list? I don't like the question. I know who I would buy but there are very specific reasons why I would choose them, and in that pursuit I wouldn't want to be limited to just "funding companies."

I believe that originators in this industry are incredibly valuable. Supply of capital is very heavy and demand for deals is insatiable. He who generates the leads or drives submissions has a lot of leverage. It's an ISO-centric market.

Why just entertain funders? Why not an ISO or a unique out of the box lead generator? Recently I have encountered a few investment groups that have held similar beliefs and they are on the prowl for originators, ones that can be rolled up into a funder.

In that regard, I am wondering what other people think. Disregarding those that heavily syndicate, ISOs have no liability on MCA/loan performance, are being paid higher commissions, are being courted by funders more aggressively, and they control client relationships. Buying an ISO sounds pretty good.

What do other people think? If you had a choice between buying a funder or buying their best ISOs, which would you choose?