[Yankeeman07]

Make an offer and you will be surprised .for instance instead of 10-12 upfront ,you will get 20-25% paid monthly.Just like lotto winners you have a choice to take less upfront or more over a longer time

An ISO that generates his/her own leads, secures the proper paperwork, closes the deal - deserves more than 25% of their commission.

IMO - What an ISO should be doing is providing good deals to their funder - NO STACKING - NO MAX OFFERS

Why does the business owner need these expensive funds? What is his/her business plan, how will these funds increase their profits.

[Ben_p]

Really? So I paid for the lead, sold the lead, closed the lead and on top of that I should be responsible for them paying it back? If another ISO ends up funding this merchant and over leverages them Im supposed to be responsible for that? Should we show up every day to the place of business to make sure things are running smooth too? Pay me upfront, sorry not sorry

i agree that having a clawback policy is dumb only because i dont do that and ill simply get more business from the competition. That being said, you guys have a horrible track record with me, pretty sure i lost money on you guys. I wonder if you say "sorry not sorry" after you triple fund the merchant, put him on a reverse then ship him off to a debt collector.

[fundingsmbs]

How about the DOJ clawbacks for non existent business

https://www.propublica.org/article/ppp-farms

[TheUnderwritingProdigy]

An ISO that generates his/her own leads, secures the proper paperwork, closes the deal - deserves more than 25% of their commission.

IMO - What an ISO should be doing is providing good deals to their funder - NO STACKING - NO MAX OFFERS

Why does the business owner need these expensive funds? What is his/her business plan, how will these funds increase their profits.

So you're suggesting 25 points to the ISO? Us as the funder has all the risk, a massive amount of skin in the deal, and we still have to account for defaults, overhead, employee salary (since our employees aren't on commission), etc.. That would mean that on any given deal, the ISO stands to make WAY more money than the funder, which is completely ridiculous given how little skin they have in the game.

[fundingsmbs]

So you're suggesting 25 points to the ISO? Us as the funder has all the risk, a massive amount of skin in the deal, and we still have to account for defaults, overhead, employee salary (since our employees aren't on commission), etc.. That would mean that on any given deal, the ISO stands to make WAY more money than the funder, which is completely ridiculous given how little skin they have in the game.

we have heard this cry before. stop working with brokers if you can't handle the heat. spend millions on your own marketing.

[TheUnderwritingProdigy]

we have heard this cry before. stop working with brokers if you can't handle the heat. spend millions on your own marketing.

LOL well good luck getting any funder to pay you 25 points noob

[fundingsmbs]

LOL well good luck getting any funder to pay you 25 points noob

25 points is ridiculous. the average upsell is around 8 points if you blend it all together. most offer up to 12 points and some go higher. it's so funny how these funder's blast you with emails about how they can fund 1-5th , pay you bonus', and stack all the first positions , than, when deals go bad, they sue? what could go wrong. Did your ISO manager actually filter who they let in?

[Yankeeman07]

So you're suggesting 25 points to the ISO? Us as the funder has all the risk, a massive amount of skin in the deal, and we still have to account for defaults, overhead, employee salary (since our employees aren't on commission), etc.. That would mean that on any given deal, the ISO stands to make WAY more money than the funder, which is completely ridiculous given how little skin they have in the game.

Not quite sure - did I not type 25% of their commission -

This was the original post - for instance instead of 10-12 upfront ,you will get 20-25% paid monthly

[helpinghand]

Good. In my opinion, the industry has it backwards. ISO's should be paid out at different milestones in the deal instead of all at once upfront. This would ensure mutual success between the funder and the broker.

Agree. Incentives need to be aligned for long-term success.

[fundingsmbs]

Most funders cutback on renewals. CAN was notorious in paying less on renewals. The industry voiced the reason is the first funding is a loss leader and the renewals is how they make profits. I believe the upfront/resid model was changed once ODC entered the space. Then, others followed. In the leasing space, that's how they pay, all upfront same day a lease funds.