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  1. #1
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    Thoughts on Lenders asking for Personal Guarantee and Agents/ISO SSN

    What does everyone think about all these new lenders demanding Personal Guarantees and SSN of owners?

    I have gotten 3 ISO packages from these lenders.

    I do not do business with banks that want a personal guarantee from the Broker/ISO.

    Mike

  2. #2
    Senior Member Reputation points: 99210 ridextreme's Avatar
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    Quote Originally Posted by michaelh View Post
    What does everyone think about all these new lenders demanding Personal Guarantees and SSN of owners?

    I have gotten 3 ISO packages from these lenders.

    I do not do business with banks that want a personal guarantee from the Broker/ISO.

    Mike
    On clawbacks? Or deals?

  3. #3
    Which lenders are asking for BG?
    So i just so i understand if you dont pay on a clawback they will put you in collections?

  4. #4
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    Quote Originally Posted by michaelh View Post
    What does everyone think about all these new lenders demanding Personal Guarantees and SSN of owners?

    I have gotten 3 ISO packages from these lenders.

    I do not do business with banks that want a personal guarantee from the Broker/ISO.

    Mike
    Michael.... SSN # makes sense -- In fact when I owned part of Manhattan's largest independent Bottles water cooler group - Getting approved with a leasing company was a 3 month process (we leased the coolers for $70-$99 per month for 60Months / (leasing company gave us 42 months upfront)

    Now regarding SSN & Personal guarantees its NOT a capybara Capital request.
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    646-708-5986 (Text Friendly!)

  5. #5
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    Funders need to protect ourselves. There are brokers out there with criminal records lying to get paid commissions or scumbags brokers that also hide stuff and lie.

  6. #6
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    [QUOTE=closer129;177175]Funders need to protect ourselves. There are brokers out there with criminal records lying to get paid commissions or scumbags brokers that also hide stuff and lie.[/QUOTE


    its very tough. When I meet with the top funders we walk about it --that we are in the business of taking risk with merchants -- some risk comes with partners. unless you fly down and date them for a year its really hard to be risk-free.....
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    646-708-5986 (Text Friendly!)

  7. #7
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    z125personal.JPG here it is -

  8. #8
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    Quote Originally Posted by ridextreme View Post
    On clawbacks? Or deals?
    And that's my Point the contracts do no differentiate between these issues. In theory signing a blanket guarantee for the ISO is also on the deal

  9. #9
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    As far as a funder is concerned, if an ISO isn't personally willing to back up the terms of the ISO agreement then he isn't worth doing business with.

    At the end of the day, anyone who's doing business with some common sense will solve most issues without having to resort to a contract.

    If it gets to the point where the funder needs to pull out the contract, then it means the ISO likely did something malicious. The personal guarantee is to protect from those people, not your every day, hard working, honest ISO.
    Last edited by Capitalize Group; 03-20-2023 at 05:58 PM.

  10. #10
    Member Reputation points: 179 fundfialex's Avatar
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    Quote Originally Posted by Capitalize Group View Post
    As far as a funder is concerned, if an ISO isn't personally willing to back up the terms of the ISO agreement than he isn't worth doing business with.

    At the end of the day, anyone who's doing business with some common sense will solve most issues without having to resort to a contract.

    If it gets to the point where the funder needs to pull out the contract, than it means the ISO likely did something malicious. The personal guarantee is to protect from those people, not your every day, hard working, honest ISO.
    Great way of putting it. No malicious intent behind having it in the agreement.
    FUNDFI
    Alex Davis
    Director of ISO relations.
    Alex@fundfimerchantfunding.com


    www.fundfimerchantfunding.com/
    https://www.linkedin.com/company/fundfi-merchant-funding/
    Office Number : (929) 277-0182

  11. #11
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    Quote Originally Posted by Capitalize Group View Post
    As far as a funder is concerned, if an ISO isn't personally willing to back up the terms of the ISO agreement then he isn't worth doing business with.

    At the end of the day, anyone who's doing business with some common sense will solve most issues without having to resort to a contract.

    If it gets to the point where the funder needs to pull out the contract, then it means the ISO likely did something malicious. The personal guarantee is to protect from those people, not your every day, hard working, honest ISO.
    Recently had an ISO tell me he's not signing my agreement because of the Personal Guarantee. I told him bye bye

    Simon Wein
    CEO- Radiance Funding
    P:516.509.9788
    W: Radiancefunding.com
    E:Simon@radiancefunding.com

  12. #12
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    We've had many ISOs question it but they always sign once we explain why it's there.

    It was put in once an ISO decided not to pay a 23k clawback.

    This seems like a good opportunity to warn people about OCEAN CAP FUNDING located at 75 Lincoln Hwy, Woodbridge Township (Iselin), NJ 08830.

  13. #13
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    Top ISOs are signing these or newbie ISOs who don't know any better? Part of owning a corp is so you don't have to PG anything individually. Until the top funders who fund the bulk of this industry adopt this, not much movement is happening with this thread . your better off chasing the merchant who breached your contract and took your money and ran and going back to underwriting basics.

  14. #14
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    I've been working with ISO's since 1999 (credit card processing) I love ISO Brokers they are the hardest working people in the world -FACT, When I talk to an ISO I may have some good questions that's normal before darting a 2.7M funding on ISO's behalf... but 24 years spending 18 hour days with ISO's friends and vacationing funeral-ing / saving / bailing / flying down post Childs suicide -- I can tell you to me ISO's are the best humanity has to offer. (minus a few bad cops and a few bad apples in each industry).
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    646-708-5986 (Text Friendly!)

  15. #15
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    Question brokers out there with criminal records

    Quote Originally Posted by closer129 View Post
    Funders need to protect ourselves. There are brokers out there with criminal records lying to get paid commissions or scumbags brokers that also hide stuff and lie.
    Is it not the function a underwriter to screen applications, documents, and verify information from the merchant?

    Are you stating that because someone had a blemish on their record, that they are not entitled to their commissions?
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  16. #16
    Senior Member Reputation points: 119752 BR-Nightmare's Avatar
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    Quote Originally Posted by Yankeeman07 View Post
    Is it not the function a underwriter to screen applications, documents, and verify information from the merchant?

    Are you stating that because someone had a blemish on their record, that they are not entitled to their commissions?
    He's talking about the Broker, not the Merchant.

    If we vet a broker attempting to sign up who has been one of those "bad apples" in the industry, you bet your ass either I'd decline them or have them put a PG.
    The Brokers Nightmare
    I don't want peace, I want problems, ALWAYS!
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  17. #17
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    Just curious on the double standard , why does a funder not sign a personal guarantee also ? Also check all your iso agreements you will see 90 % of them signed by the iso rep or manager not the owner. Hell half these companies we do not even know who the real owners are, just the ceo ,cfo etc.

    Also i do not agree with the whole bad iso thing , just like a funder can underwrite a merchant that they are willing to give a million dollars to , they should be able to underwrite an iso . ask on a application for all iso personal info is fair , having him sign personal on an iso agreement is not unless the owner of the funding company will do the same

  18. #18
    Senior Member Reputation points: 119752 BR-Nightmare's Avatar
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    Quote Originally Posted by Michael I View Post
    Just curious on the double standard , why does a funder not sign a personal guarantee also ? Also check all your iso agreements you will see 90 % of them signed by the iso rep or manager not the owner. Hell half these companies we do not even know who the real owners are, just the ceo ,cfo etc.

    Also i do not agree with the whole bad iso thing , just like a funder can underwrite a merchant that they are willing to give a million dollars to , they should be able to underwrite an iso . ask on a application for all iso personal info is fair , having him sign personal on an iso agreement is not unless the owner of the funding company will do the same
    The funder is putting up the money for the Merchant, the funder has a majority of the risk on files, they even have to collect in the event of a breach of contract, isn't that enough? The Iso's financial risk is the clawback period while the funder is the full term.
    The Brokers Nightmare
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  19. #19
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    Quote Originally Posted by BR-Nightmare View Post
    The funder is putting up the money for the Merchant, the funder has a majority of the risk on files, they even have to collect in the event of a breach of contract, isn't that enough? The Iso's financial risk is the clawback period while the funder is the full term.
    Ok so put a personal also on the funder . iso spend money to bring in deals , why should they not have a guarantee that they will get commission if they fund with funder A over funder B

  20. #20
    Senior Member Reputation points: 119752 BR-Nightmare's Avatar
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    ??

    It's on the ISO Agreement, commission is paid to you. Deal funds, you're paid. It goes bad at a certain timeframe, you're clawed that commission.

    If the funder breaches it, you take it to court....

    Or you can come on here and complain about it.
    The Brokers Nightmare
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  21. #21
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    Quote Originally Posted by BR-Nightmare View Post
    ??

    It's on the ISO Agreement, commission is paid to you. Deal funds, you're paid. It goes bad at a certain timeframe, you're clawed that commission.

    If the funder breaches it, you take it to court....

    Or you can come on here and complain about it.
    You take it to court on the business not on the personal
    Also Going out of business , if a funder goes out of business they do not need to pay you commission , if an iso goes out of business he still has to give the clawback from personal

  22. #22
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    I agree with Michael... funders that come down on ISO's should realize there will be competitors (ME!) that will be happy to explore with them. Not signed up?? ...RUSH ASAP youll thank me later....
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    646-708-5986 (Text Friendly!)

  23. #23
    Senior Member Reputation points: 99210 ridextreme's Avatar
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    "But if I tell the underwriter you don't wanna sign a PG, he's gonna think you don't intend on paying it back"

  24. #24
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    it won't change unless ISO's refuse to sign those personal guarantee's. Seems asinine to me to sign a personal guarantee through my business.

    It's hopefully a very rare example, but if an ISO goes under and a funder than comes and demands a 10K Clawback that he doesnt have anymore, why should the ISO have to worry about being personally sued?

    Im glad to do business with guys like Marcus instead of these small shady shops that require the personal guarantee, and i'd advise all ISO's to do the same.

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