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06-26-2020, 02:15 PM #1
- Join Date
- Aug 2016
- Posts
- 486
I beg to differ..
Why would I not have to worry about my credit on a $30K home renovation or a $200 circuit install? I don't pay for anything with cash. I use a credit card or charge card to reap the benifits of the points and have more protections in the event something goes awry, plus if the card is compromised, my real bank accounts are not compromised. But doing it that way, I still have to worry about my credit. Because what if I cant pay the bills when they are due?
And how is that different than a MCA?
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06-26-2020, 02:27 PM #2
- Join Date
- Jun 2015
- Posts
- 3,319
Lol u misunderstood me.when you get a quote for home renovation, they do not pull your credit like an MCA does .
I will never forget I had a merchant a bunch of years back insisting his credit was 700 plus ,I sent him to an a lender who declined for sub 500 credit.merchant went nuts calling me a liar etc. I told him to pull a free credit report send it to me and let's see what is going on . Merchant got his credit and saw that from shopping he had over a hundred inquiries which dropped his credit from 700 plus to under 500. When you are dealing with credit pulls you need to be more cautious when shoppingLast edited by Michael I; 06-26-2020 at 02:36 PM.
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06-26-2020, 02:51 PM #3
- Join Date
- Aug 2016
- Posts
- 486
Yeah, I thought you were talking about hurting your credit by not being able to pay..
But even in this scenario in regard to acquiring credit or a MCA. I still had to worry about my credit when I applied for the credit cards that I use. I think the credit aspect that you mention has no bearing on if a merchant wants to understand exactly how parties involved are compensated in regards to something that the merchant is purchasing.
A couple of years ago I took abfunders advice that he mentions here in regard to 0% Low Interest Credit Cards being the cheapest access to funds. I had to worry about my credit, to think I would be able to get the highest approvals for the longest amount of 0% promotions. Also I had to understand that my credit would also take a hit for the new inquires, then also take a hit when I use the credit that they give me due to my utilization sky rocketing!
To paint a clear picture regarding the 0% CC...
Those cards have been a gift that keeps on giving! I have since paid off all those cards, so my credit score is now higher than what it was before hand. Plus the credit limits on the card have been raised even higher, plus they send me those blank checks in the mail with more 0% interest promotions!! After we come out of this covid situation, it may be time for me to re-leverage my credit score and go for a new round of 0% CC approvals.Last edited by Winning; 06-26-2020 at 03:06 PM.
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06-26-2020, 08:09 AM #4
- Join Date
- Feb 2017
- Posts
- 3,396
Another thought here.... If they ask me, "What's your fee for doing this?" If I don't have a fee agreement in place beforehand, my answer would be: "The funder pays me directly directly." I've even told some of them that up front some times.
Most merchants understand that there are margins and when was the last time that they went into a supermarket and asked, "How much are they making on this pasta? I'm going to go to the manager and make them drop the price." Yes, we can drop the price, but they don't know that. They also understand we're all in this to make money, and, like was said above, their bottom line should be able to support your fees.
What I don't like is springing last minute fees or PSFs that hurt the funder and the client.
See what Winning said above, prices for financing are not different than quoting an electrician. How many people with 780 FICOs have taken an OnDeck offer when they could go to the bank and get a 0% APR business credit card? Whether they were lazy or "sold" on something doesn't mind, as long as there wasn't trickery or foolery involved.
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06-27-2020, 10:18 AM #5
- Join Date
- Feb 2020
- Posts
- 16
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06-26-2020, 09:28 AM #6
- Join Date
- Jan 2018
- Posts
- 515
I've only had one deal where a merchant asked about my commission. I've been funding the same merchant for two years and the last deal we did, I got him the best dollar amount/term/rate we've ever done. I didn't charge a PSF and he was happy about the deal so he wanted to make sure I was getting paid. I just told him that the funders pay me a fee for facilitating the deal. I think most merchants wont ask what you are making but I've been working with ISO's for the past few years not direct to merchant so I'm not too sure anymore.
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06-26-2020, 04:57 PM #7
- Join Date
- Oct 2019
- Posts
- 37
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06-27-2020, 10:07 AM #8
- Join Date
- Feb 2020
- Posts
- 16
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06-26-2020, 05:08 PM #9
- Join Date
- Oct 2016
- Posts
- 4,318
You don’t volunteer your commission unless you want to lose the deal.
Never had a client even ask me my commission. If one did, I would remind them that it would require 15-20% of a lenders budget to market their product. Rather than market their product themselves, they pay us to do it for them at a cheaper price. But that’s never come up yet.
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06-27-2020, 10:02 AM #10
- Join Date
- Feb 2020
- Posts
- 16
"You don’t volunteer your commission unless you want to lose the deal.
Never had a client even ask me my commission. If one did, I would remind them that it would require 15-20% of a lenders budget to market their product. Rather than market their product themselves, they pay us to do it for them at a cheaper price. But that’s never come up yet."
Thanks WCF! Love this: "Rather than market their product themselves, they pay us to do it for them at a cheaper price." So we're saving you even MORE money, Mr. Jones—because we want repeat customers. Everything we do is geared toward making you a repeat customer, like most of my clients. When you come back for more funding because you're happy, then the lenders and I are happy. When YOU win, everyone wins! Makes sense, doesn't it." Heheheh
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07-01-2020, 11:31 AM #11
I have been asked that question by clients before. I say that the lender pays me a small portion for my services. Most merchants usually don't ask this question they are just concerned as to when there money is hitting the account.
FUND3R1
"Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each. --Christopher Rice"
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