[sudermatt]

I'm working with a B funder in the MCA space. I'm hoping to get feedback on what we should be focusing on as far as system and process improvements.

From the ISO perspective what are the 3 things that make one funder better than others?

Thanks in advance.

[CROSULTING]

Flexibility on competing offers and good communication is the key to seeing more files from ISO's

[pcfunder]

Flexibility on competing offers and good communication is the key to seeing more files from ISO's

thats probably the majority of what makes a good funder. does anyone else have any input on what makes a good funder?

[Michael I]

commissions/ headaches (speed low stips no reprice etc)/knows the industry(cant want A paper to give c paper rates) thats the 3 i would say

[abfunders]

You should have a very clear differentiator, what makes you different.
Also, like Michael said, if the goal is A-D, then have different boxes for different types of deals.

[MCN]

Speed, easy stips, good communication.

Bottom line is i want to work with a funder who i know will fund. Id even rather a lower commission to know the deal will fund. Theres nothing worse than having a deal killed in Final review for reasons that should have been caught earlier on. There are several funders notorious for this and i stopped sending them deals.

[DTFdowntofund]

Speed, easy stips, good communication.

Bottom line is i want to work with a funder who i know will fund. Id even rather a lower commission to know the deal will fund. Theres nothing worse than having a deal killed in Final review for reasons that should have been caught earlier on. There are several funders notorious for this and i stopped sending them deals.

You can avoid this altogether if you find out the specifics when you sign on with a funding house; they should be upfront about whether they issue soft approvals and underwrite at the end (the worst) or otherwise.

[MCN]

You can avoid this altogether if you find out the specifics when you sign on with a funding house; they should be upfront about whether they issue soft approvals and underwrite at the end (the worst) or otherwise.

should be is the key word. But the real issue is that some funders are prone missing things because of human error that they should catch earlier on. They also are constantly adjusting underwritering guidelines and their process so what they say is a hard approval isnt that hard.

[DTFdowntofund]

Transparency.

Everyone on either side of the fence wants to fund solid volume as quickly and efficiently as possible; the key is having folks who understand the product scope, submit within the eligible parameters, and have it taken from A - Z without hiccups and the constant back-and-forth. When both ends are well versed and have a fluidity in deal flow.. everybody wins. This also includes being extremely forthright in all aspects from details on submissions that may prove problematic to flexibility (or lack thereof) on approvals... commission, expectations etc.

[Clark Sica]

I agree with DTF... Transparency on both ends is what can forge great relations. Isos.... a funder knows what type of broker you are by how you submit a deal.... Current advance balances, requested dollar amount, use of funds, etc helps a funder know that you took the time to get to know the merchant and explain the product. You are someone they will want to continue doing business with. This goes for funders as well, I noticed many funders send very basic declines and never take the time to reach out to their iso and explain the decline, or better yet, explain their approval! Taking that time to explain to someone what is good or bad about a file not only helps the funder better guide their iso, but it helps the iso know that you are someone who will help get their deal to the finish line with no additional BS. For example, many of our isos here at Lending Valley, Inc explain the dollar amount, use of funds and daily or weekly payment the merchant is willing to pay from the initial submission. This helps underwriting better adjust our approvals for an easy sell. This method has helped us get deals in and out the door same day (pending how fast the merchant moves). Transparency, solid communication and a detailed explanation on who, what, when, where, why and how you operate is the foundation of any great relationship. Trust is earned but transparency is a 2 way street.

[sudermatt]

These are great!
Thank you everyone.

Anything else?

[pcfunder]

ooo these are awesome. definitely learned a lot.

[Nick MGM]

Speed, upfront underwriting, light stips, good communication, next day commissions and most importantly being honest about what files you'll be most competitive on with a broker upsell. I've encountered a lot of funders that say they have an "A paper" box that requires 600+ FICO score and 2 years TIB, but the rates and terms they present are B and C paper... If you're not going to be competitive in certain boxes let your ISO's know that. A great way to do this is to have an ISO package that shows the minimum requirements, buy rates and max terms for each of your boxes. This would save a lot of time on your end as well by not underwriting files that have no shot of closing, and keeping declines to a minimum.

From an ISO's perspective it looks like funders that don't do this are trying to backdoor you by having you send all of your files to them. Which reminds me, always give a thorough explanation why you passed on a file so your ISO feels comfortable sending you more files in the future without the fear of getting backdoored, which is everyone's biggest fear.

[Yankeeman07]

I don't notice any comments on the responsibility of brokers to bring files to the table that
are viable. Readable applications, complete bank statements, know what the funders requirements, etc.

[Michael I]

I don't notice any comments on the responsibility of brokers to bring files to the table that
are viable. Readable applications, complete bank statements, know what the funders requirements, etc.

Did you notice no one talked about the weather either?people are answering the question,not having different discussions

[Kevin Henry-Seacoast]

Did you notice no one talked about the weather either?people are answering the question,not having different discussions

80 here in Palm Beach County.......

[Yankeeman07]

Did you notice no one talked about the weather either?people are answering the question,not having different discussions

Responsibilities of broker is a different discussion?

[Michael I]

Responsibilities of broker is a different discussion?

question was " From the ISO perspective what are the 3 things that make one funder better than others?" and your answer is what a broker responsibilities' is ? Now i am curious what your other 2 are just to get a laugh

[happyman]

whats the avg points brokers are making now

[DTFdowntofund]

I don't notice any comments on the responsibility of brokers to bring files to the table that
are viable. Readable applications, complete bank statements, know what the funders requirements, etc.

You must have skipped mine.

[MCN]

I don't notice any comments on the responsibility of brokers to bring files to the table that
are viable. Readable applications, complete bank statements, know what the funders requirements, etc.

feel free to make a thread on that. Its an interesting discussion as well. By posting that here you just make youself seem confrontational

[Yankeeman07]

feel free to make a thread on that. Its an interesting discussion as well. By posting that here you just make youself seem confrontational

MCN is now the hall monitor - I love people that hide behind a screen name and make assumptions.

Funding-Lending is a 2 way street - IF a broker uses some common sense and understands that both sides
are in the business to earn a income/profit - the path to funding may go easier.

[JakeS]

The ISO manager is what what makes a real funder successful .
Fully underwriting the file upfront and being 100 % transparent about your programs . An ISO manager that has the industry knowledge to understand a file and overturn a decline when underwriting has different opinion . A good ISO manager fights for ISO's deals that have merit.

If you fund B-C paper and an ISO sends you a high grade deal let them know that you would be good for hop if they fall short on an A paper deal . Don't just a worthless approval that you know has no chance of funding . Communication is key . Ask questions when you get a file in if you think the information will be helpful to get an approval. Review every submission so you know if the deal even has a chance.
Stick to your word and communicate.
If the ISO manager works for company that back peddles go find a solid company to work for .
Time is kills deals !!!!

[pcfunder]

The ISO manager is what what makes a real funder successful .
Fully underwriting the file upfront and being 100 % transparent about your programs . An ISO manager that has the industry knowledge to understand a file and overturn a decline when underwriting has different opinion . A good ISO manager fights for ISO's deals that have merit.

If you fund B-C paper and an ISO sends you a high grade deal let them know that you would be good for hop if they fall short on an A paper deal . Don't just a worthless approval that you know has no chance of funding . Communication is key . Ask questions when you get a file in if you think the information will be helpful to get an approval. Review every submission so you know if the deal even has a chance.
Stick to your word and communicate.
If the ISO manager works for company that back peddles go find a solid company to work for .
Time is kills deals !!!!

would you rather have an ISO manager that is constantly overturning declines and fighting for your deals to fund or a funding company that approves a lot and funds with ease?

[JakeS]

Sales and risk always bump heads .