[FUSIONCAPITAL]

This scenario has reared itself multiple times... We fund a deal brought to us by broker "X", come renewal time the Merchant refuses to work with the broker for reasons like undisclosed fees, broken promises and a lack of communication. As a direct funder, Fusion Capital's first priority it to its Merchants. Without them, we would not be here.

The most interesting part of all this, is that there is an expectation by brokers to be compensated by the funders when deals become renewed, even if the original broker no longer handled the deal, not to mention if the Merchant refuses to work with broker "X" any longer. This is fine with exception, Fusion Capital does honor renewals. But when the same broker does something shady, where should the obligation be? Before you answer this question, think about this... Regulation may be around the corner; who will be targeted first? Ultimately, the goal of regulation is to protect the consumer (the end user), or the business owners in our case.

[GRP Funding]

Unless the ISO/broker did something to violate their agreement with you and you took the proper steps to notify/terminate them, you should pay the commission whether or not they were involved in the renewal. Just my opinion.

[Sean Cash]

business owners and consumers are nothing alike. Does the contract you present your ISOs bind you to paying your ISOs on renewals? If so, it doesn't matter if they don't do any work after the initial advance.

"The same cannot be said for some brokers/brokerages, who only seek to make as much up front commission as possible and stack the Merchant's into a hole that is virtually impossible to get out of. "

I don't know what brokers you work with, but you are obviously working with the wrong ones.

If your contract says the ISO gets paid, you pay the ISO. You were happy to get the deal, but now that it's old news you're upset that they continue to make money on it. You either pay on renewals or you don't. You either use brokers or you don't.

[J.Celifarco]

100% agree with Brian and Sean here.. The Broker should expect to get paid.. They brought you the deal and unless they have clearly broken their ISO agreement with you then you have to pay them.. I will agree that there are times where the broker is wrong but just as many times the merchant is crazy. If the merchant does not want to work with the broker any longer you fund the deal through your in house renewal department and PAY THE BROKER ON THE DEAL. The only thing this post tells me is that I seriously would not want to send you business.

[FUSIONCAPITAL]

We do pay our brokers on renewals. Question to you J.Celifarco... you sent a funder a deal and it got funded. Come renewal time, do you step in and shop around that deal?

[FUSIONCAPITAL]

If you are "the right one" then we are glad to do business with you.

[J.Celifarco]

no I renew it with the bank that I funded it with. This is why I asked if the iso breached the ISO agreement. Shopping a deal that you funded that you want to renew should be addressed your iso agreement. If you did not put that in the ISO agreement then that is your fault not the ISO.

[Funder Mark]

Renewing a deal without paying the ISO, especially if you have it on the agreement, is a great way to lose your brokers. Companies may pay less to brokers on renewals, but that is because the hard job is over.

[FUSIONCAPITAL]

It is in our agreement. Like I replied to Sean, if you are the "right" broker, we're happy to work with you and every other broker that maintains an ethical standard. The ISO/Funder relationship is a symbiotic one, we benefit from each other.

[Scott Williams]

Pay the broker his/her renewal commission and then terminate your ISO agreement with them if you don't want any new files from that broker shop.

[Ocean Financing]

Pay the broker his/her renewal commission and then terminate your ISO agreement with them if you don't want any new files from that broker shop.

Preach!

[J.Celifarco]

AgainI have to disagree you pay the broker then stop doing business with them.. Is the commission on one deal worth possibly ruining your reputation its bad business. Pay them and then cut ties. I wouldn't want someone to be able to come on a forum like this a talk how they were not paid on a renewal because the bank cheated them.. You choose who you work with, if you made a mistake by doing business with an ISO pay the commission and try not to make the same mistake in the future.. Maybe you need to look at the process you use to sign up ISOS if you are having problems like this

[@jeannette]

In my opinion, if a broker brings you a deal and the deal comes up for renewal, then you pay the broker. The merchant would not be calling you for a renewal if the broker didn't bring the deal to you in the first place. If during the term of your agreement you realize that the broker is not following their agreement or ethical business practices it is your right to terminate the broker and not accept new business from them. Not paying them for business that they have already brought you while you have an active agreement is a breach of your agreement with them.

[FUSIONCAPITAL]

Definitely appreciate all of the feedback. Just frustrating a few rotten apples ruin it for the rest of the bunch. Refreshing to know there are plenty of good brokers still out there! Have a Happy New Year to those of you celebrating!

[Ocean Financing]

We just experienced the same thing with FUSION not paying commissions on renewals. We got a couple deals funded there. (at the time our deal was the biggest they funded(45k) and we ended our business relations because of a personal matter. Never got the back end points they promised on completion or commission on the renewals they just funded a couple weeks back.....

Still waiting on those points!

[FCF Fund]

I personally never had an issue with Fusion, they always answer their calls and respond pretty fast and paid me on my completed deals.

Personal matters aside, never had an issue with them.

[tommy]

First off fusion has become the go to funder and they don't play games. They underwrite and fund same day. You can't find that in this business. They never once broke there word with me on anything they said and that's why I brought them 60 brokers that continually fund deals with them. As far as them not paying, the person that made this rumor up is mutt and dosnt deserve to bring deals to reputable funders. Take your **** deals and ****ty attitude somewhere else. It's gals like you that hate on funders and try to tarnish there name. What your not realizing is that you look like a fool because as you waste time posting nonsense true producers are funding deals. Step up your game boys, stop the lies and start working. If you resort to a board to vent you may not be cut out for the business.

[FUSIONCAPITAL]

To Ocean Financing, let's be clear. You recently sent us a file that we found a funder willing to do the deal. What did Ocean Financing do next? You bypassed Fusion Capital, reaching out to this funder, whom you did not know existed, and cut us out. This is why Fusion Capital ceased doing business with Ocean Finance, it was not for personal reasons.

[Ocean Financing]

Understandable,

Customer service is second to none, as a funding source they are super conservative. I just wish they would keep their word and pay renewals and points on completion regardless of the personal situation.

Pay the broker, you would never would've had the deal in the first place without them.

[Meo35]

Reading this I was thinking about the relationship I have enjoyed with Fusion. I know these people really well. I have experienced a high level of integrity and have never not been paid what is earned on a file.

That being said, are they good or bad? I can only say, good things. So, as we know there has to be a reason why someone would write negatively.

I also find vindictive people say many bad things on blogs. I would ask for a Fusion representative to comment on what the issue is?

[Ocean Financing]

I'm not vindictive, I just sense some hypocrisy. How is your priority the merchant before the broker? If thats the case why give incentives to brokers to bring there book of business over, why promise back end points? Because without a steady stream of deals coming from brokers, there is no fuel to that compounding reinvestment effect that everyone in this industry has come to love.

I wrote that comment not in a last ditch effort to get paid but to show that hypocrisy runs rampant.

I have no problems with FUSION or their practices. I actually use to work with everyone at Fusion at our previous funding company, so I know these people on a personal level and can say that everyone there transparent and helpful.


I'm just saying pay the broker.

[J.Celifarco]

this is getting off the point of the original post.. The question was IS IT OK TO NOT PAY AN ISO COMMISSION ON A RENEWAL? All anyone said is unless there was a breach in the ISO agreement then no matter what the situation you pay the commission. Every bank out there will have ISOs that love them and ISOS that hate them. This is about basic business practices and if or when it is ok to no pay a commission. Fusion seems to think they own the deal, when at the end of the day they would not have it unless the ISO brought it to them. This all comes back to the same question was the ISO agreement breached Yes or No. Nothing else matters.

[Ocean Financing]

this is getting off the point of the original post.. The question was IS IT OK TO NOT PAY AN ISO COMMISSION ON A RENEWAL? All anyone said is unless there was a breach in the ISO agreement then no matter what the situation you pay the commission. Every bank out there will have ISOs that love them and ISOS that hate them. This is about basic business practices and if or when it is ok to no pay a commission. Fusion seems to think they own the deal, when at the end of the day they would not have it unless the ISO brought it to them. This all comes back to the same question was the ISO agreement breached Yes or No. Nothing else matters.

Exactly if the ISO agreement wasn't breached then the broker deserves to get paid, if it was breached then its a different animal.

[Eric S]

The customer probably thinks they'll get a better rate if they cut the broker out.

[golf2014]

Without the broker bringing you the deal in the first place, there would be no customer/renewals.