Results 1 to 25 of 68
Hybrid View
-
02-11-2021, 12:23 PM #1
- Join Date
- Dec 2016
- Posts
- 379
-
02-11-2021, 12:32 PM #2
- Join Date
- Mar 2019
- Posts
- 254
I agree that most funders charge an origination fee but i don't agree that the reason is because "why not charge if everyone else is charging".
The O / UW Fee is for funders to cover some of their upfront costs and to possibly cover some of the broker's upfront commission.
Brokers make an upfront risk free commission, while day one the funder is in the hole the funding amount + the commision.EPIC ADVANCE
Mark@epic-advance.com
-
02-11-2021, 01:00 PM #3
- Join Date
- Dec 2016
- Posts
- 379
-
02-11-2021, 01:09 PM #4
- Join Date
- Jan 2018
- Posts
- 518
-
02-11-2021, 01:12 PM #5
- Join Date
- Mar 2019
- Posts
- 254
EPIC ADVANCE
Mark@epic-advance.com
-
02-16-2021, 12:26 PM #6
- Join Date
- Jun 2017
- Posts
- 2,049
-
02-11-2021, 03:29 PM #7
- Join Date
- Oct 2020
- Posts
- 92
lololol! its a risk/reward decision. The reward is far greater as a funder! Which is why there are funders at all. I am a broker not an underwriter. Please do not make me responsible for your sub-par underwriting skills. I don't work with any lender whos claw back period exceeds 30 days ( not 30 business days 30 regular old days).We work really hard to get deals submitted and performance on a deal should not be the brokers responsibility( obviously if the broker double funded or took a large PSF that is a different story and deserves to be clawed back) ! In a perfect world there would be no clawbacks for honest,hardworking non-psf charging, non -stacking ISOS!!
-
02-11-2021, 03:49 PM #8
- Join Date
- Jan 2018
- Posts
- 518
Yah I agree that the weight of performance should not really be put on the broker AS LONG AS brokers don't do things to actively ruin performance. Being and acting shady makes a merchant completely second guess what they are getting into and they probably are way more willing to default if the sales rep acts shady. As long as a broker understands to treat merchants right, to not hide fees, to be honest and up front about the entire program, to not promise BS, and to just generally be an all around good sales rep when a merchant needs it then I don't care if a mistake happens and the merchant defaults.
the problem I notice is that a lot of brokers dont treat MCA like a sales job they treat it like a numbers job. Call 300 merchants and hope that they want money. Force the program down their throat and on to the next. Force another program down their throat and on to the next. 30 days has passed, sweet I dont need to worry. Honestly regardless of bad credit, regardless of negative days, regardless of debt and legal issues if someone called me cluelessly shoving MCA down my throat until I'm desperate enough, I would probably be like **** this guy and this program im out too.
-
02-11-2021, 04:22 PM #9
- Join Date
- Aug 2016
- Posts
- 827
-
02-11-2021, 04:27 PM #10
- Join Date
- Jun 2015
- Posts
- 3,322
-
02-11-2021, 04:29 PM #11
- Join Date
- Jan 2018
- Posts
- 518
-
02-11-2021, 03:50 PM #12
- Join Date
- Mar 2019
- Posts
- 254
In a perfect world i would agree with you. there would not be a need for CB since brokers are acting in good faith and the onus is on the UW. Unless an unforeseen circumstance were to occur like a natural disaster or a merchant suddenly having no income a deal should not default. And if it does, one cannot blame the broker.
But since we do not live a perfect world. An UW can make a great decision and fund a deal and it can go bad due to PSF, Stacking, double funding, lying to a merchant etc. Therefore causing a funder to want a commission backEPIC ADVANCE
Mark@epic-advance.com
-
02-11-2021, 04:18 PM #13
- Join Date
- Aug 2016
- Posts
- 827
-
02-11-2021, 04:35 PM #14
- Join Date
- Mar 2019
- Posts
- 254
To be fully honest, that is not my policy.
1. Very often it is very hard to find out what went wrong and why the deal went bad, especially if the merchant has gone MIA.
Every so often, you get updated docs and find out that you were double funded, stacked etc. Or eventually, you hear from the merchant that he defaulted on your MCA since the SBA or LOC he was promised never came.
2.I have a few isos that i have full trust in and if a deal comes bad every so often it can slide and not clawback a cm.
But there are other isos that pretty quickly you notice that all their deals go a bit sour and you see that they are just trying to shovel whatever they can at you (most deals are previous defaults, funding mtd that they knew about, hidden accounts). in a case of a day one default, we would be more inclined to take our cm back and either be more cautious with them or no longer fund for them.
Obviously, there are shops that fit between those 2 types.EPIC ADVANCE
Mark@epic-advance.com
-
02-11-2021, 05:22 PM #15
- Join Date
- Oct 2020
- Posts
- 92
-
02-11-2021, 05:30 PM #16
- Join Date
- Oct 2020
- Posts
- 92
I think if funders put the following into their iso agreement that if at any time there is irrefutable proof that an iso either lied to merchant, charged a psf or double funded/ stacked a merchant, the iso can be clawed back immediately, even without a default, it would cause alot less of this kind of activity and clean up this industry in a major way ! Als we ISos would not t have to be responsible for crappy underwriting.
-
02-11-2021, 04:09 PM #17
- Join Date
- Jun 2015
- Posts
- 3,322
-
02-16-2021, 11:55 AM #18
- Join Date
- Jun 2017
- Posts
- 2,049
-
02-16-2021, 12:12 PM #19
- Join Date
- Oct 2020
- Posts
- 92
-
02-16-2021, 12:23 PM #20
- Join Date
- Jun 2015
- Posts
- 3,322
-
02-16-2021, 12:29 PM #21
- Join Date
- Jun 2017
- Posts
- 2,049
They always paid me. My family can be tied to the Mafia, if you try. 70's and 80's. SO its hard for me to really hold a grudge for that.
The thing I disagreed with is renewal stealing, but once you know its just YOUR RESPONSIBILITY to reach out to merchants, then get renewal offers from PAR. It didnt happen.
Wide is Great, But i literally HATE HATE HATE, when I submit to them, get a better offer elsewhere and fund elsewhere, then 2 weeks later wide funds the same approval they issued me and I get no commission, but again, once you know they do this, its not an issue anymore.Last edited by ryan $; 02-16-2021 at 12:37 PM.
-
02-11-2021, 01:12 PM #22
This.
There can be a multitude of intent when it comes to the set up fees, but to address the reality that "we all play this game to get paid", it can be understandably justified in the amount of overhead it cost the company to not only accept, process and execute the deal.. but in the event of a default, it will at the very least manage to cover cost and the rep's compensation. But at the same time, I'm sure we all know folks who really take advantage here.
-
02-11-2021, 01:15 PM #23
- Join Date
- Dec 2016
- Posts
- 379
-
02-11-2021, 01:41 PM #24
- Join Date
- Jan 2018
- Posts
- 518
-
02-11-2021, 06:42 PM #25
So I skim the board occasionally, and if I have something specific to say I do.. and then move on. I know what I say is always on point and very succinct , but I type 90WPM and the thoughts come very rapidly and organically so it takes a fraction of the time you would think.
On the flipside, I couldn't tell you how many times you've posted today, this week, or about what.
Similar Threads
-
ISOs, what makes funders great?
By sudermatt in forum Merchant Cash AdvanceReplies: 32Last Post: 02-10-2021, 04:58 PM -
Queen funding-great funders
By nateteabs in forum Deal BinReplies: 8Last Post: 03-13-2018, 01:22 PM -
Landscaping business in need of 50k. Great credit, great bank statements, etc.
By Nationwide Funders in forum Deal BinReplies: 8Last Post: 01-22-2017, 11:42 PM -
Build Business Based On Referrals - Who Makes Great Referral Partners To Contact
By IamGrateful in forum Merchant Cash AdvanceReplies: 5Last Post: 09-06-2016, 04:52 PM -
Amazing MCA Company.... Great Team Work, Supportive, Great Energy....
By increasesales123 in forum Help WantedReplies: 10Last Post: 08-30-2016, 01:27 PM