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  1. #1
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    Docs First...Ask Questions Later

    We have been duped recently by a couple of so called major lenders conveying to us we have hard approvals when we don't. We have been very loyal to 3 established ISO relationships until last month, but now with increased application volume, we have reached out to some of the "we can fund any deal" lenders. Our merchants have signed docs with these lenders and we were told that just the usual stips would be required, and then a landslide of additional documentation requirements and stipulations flood our inbox. Even after meeting these requirements, most of these deals are declined just before funding.

    I feel that these deals are being funded behind our backs. We have an investigation ongoing and will get to the bottom of this.

    Anyone have the same experience here? Any input would be helpful.

  2. #2
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    the lenders don't care about the merchants and iso who bring them the deals. They r happy you bring them deals, but once everything is in the lenders hands, they r the judge and jury. There is no such thing as a rush and many times asking for updates is like pulling teeth. You would think the factor rates for all the stips they need would be 1.15 instead it's 1.44

  3. #3
    Senior Member Reputation points: 30475 Zach's Avatar
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    Docs First...Ask Questions Later

    Fund, you post a lot of wise, insightful information on this forum. Would you mind if I asked who the lenders were? I value your opinion, and I want to make sure I don't make a mistake by trusting someone who isn't worth the time.
    Zachary Ramirez – CEO
    Phone: 562-391-7099
    Email: zach@zacharyjosephramirez.com

    1661 N. Raymond Ave #265
    Anaheim CA 92801

  4. #4
    Best thing to do before sending your clients information to a so-called top lender:
    understand what criteria the Lender "LIKES" to fund..Ask Questions.
    File control sheet your documents correctly. saves lender time.
    dig deeper from your client in getting every piece of documentation about the business, landlord, and about themselves. all at 1 time.(saves future calls to piss the merchant off)
    you don't want to rush them in saying. ALL WE NEED IS...then follow by saying. And we can get you funded.
    Unless you are the underwriter yourself or the person coming out of pocket to cough up 20-500k. don’t shoot your self in the foot with empty promises
    hope this helps


    ________________________________________________
    Christian Estevez
    Managing Partner
    HARLLON HOLDINGS
    O:516-730-7959
    C:516-255-7916
    E:CESTEVEZ@HARLLON.COM
    "CARPE DIEM"

  5. #5
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    Quote Originally Posted by FUNd View Post
    We have been duped recently by a couple of so called major lenders conveying to us we have hard approvals when we don't.
    Stealing from ISO's and brokers will only intensify. The costs of customer acquisition are too damned high. Funders will become smarter and smarter in how they steal from brokers and ISO's.

    True story; MAJOR SUPER BIG DEAL funder reaches out to me in winter 2013. We meet. We agree to a formal engagement for services rendered (my daily fee was $5,000). I show up at his office. Mind you, this firm is a big deal. Really nice offices, great staff. Etc. This was no "chop shop" operation.

    After delivering value, I expected to be paid. The CEO said that he would have a check cut for my travel expense plus a $50 bonus and played dumb about the $5,000. I got every dime I was owed within 72 hours.

    That experience was one of the catalysts to my doing another startup. I was astounded that a "leader" in the industry had the temerity to schedule a meeting, look me in the eye, make an agreement, and try to rob me.

    Good luck.

  6. #6
    This is always a concern in this industry. Another that has become extremely prevalent is Funders asking for the deal to be sent over prior to an ISO Agreement being put in place. While some Funders are trustworthy, many are not and if a Broker sends a deal without the protection of an Agreement in place then they are setting themselves up to be taken advantage of. At the end of the day it is up to ourselves to keep ourselves as protected as possible because if it comes down to having to take legal action then we need to have our ducks in a row or we will lose...plain and simple!

  7. #7
    Sponsor Reputation points: 126 freddy's Avatar
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    Thats why you stick with private funders who do not farm out their declines. At Business Credit and Capital - our declines are expunged from our system.
    Freddy Zalta
    President
    Cash Crunch Advance, LLC
    Direct 1-888-275-1090
    freddy@cashcrunchadvance.com

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