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  1. #1

    Question Question for lenders

    Hi guys,

    Great community you have here. I am re-joining the space (was part of Pearl's sales team about 2 years ago), but now looking to start as an ISO.

    My question is: Is it hard to get accepted by lenders as a new ISO to send them business? Maybe you should know that I live outside of the US, and this is the main concern I have regarding the question. Does it really matter where I live or who I am?

    If that doesn't matter, would the entity (LLC) need to be based in the US?

    Thank you very much if you help with my stupid questions.

  2. #2
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    I've spoken with several who are in the same position, including ISOs in Bangaldesh.

    Your LLC definitely needs to be US-based, 100%. Very often you're going to get a request for an ID or SSN, just to make sure that you can be sued in the US if you run away with the commissions or commit fraud. Also, it takes about 6 week for a non-US citizen to get an EIN. Then opening a bank account would be more difficult. However, Mercury Bank says that they can do it.

    Some of the A-paper shops are got harder to get accepted as a new ISO these days, but not all. However, they all require a US-based person. Most B-D don't really care.

    The way around this is to have someone in the US be your LLC's owner and sign for all of the paperwork and be the owner, offer them a small override, and then you do the rest (money movement, etc). You can then do all of your currency transfers through wise.com or currencytransfer.com or something similar to your own business account or personal account in your country.

  3. #3
    Quote Originally Posted by abfunders View Post
    I've spoken with several who are in the same position, including ISOs in Bangaldesh.

    Your LLC definitely needs to be US-based, 100%. Very often you're going to get a request for an ID or SSN, just to make sure that you can be sued in the US if you run away with the commissions or commit fraud. Also, it takes about 6 week for a non-US citizen to get an EIN. Then opening a bank account would be more difficult. However, Mercury Bank says that they can do it.

    Some of the A-paper shops are got harder to get accepted as a new ISO these days, but not all. However, they all require a US-based person. Most B-D don't really care.

    The way around this is to have someone in the US be your LLC's owner and sign for all of the paperwork and be the owner, offer them a small override, and then you do the rest (money movement, etc). You can then do all of your currency transfers through wise.com or currencytransfer.com or something similar to your own business account or personal account in your country.
    That is great information, thank you for sharing! In fact I was thinking I can create an LLC in Delaware through an agent. I know it is possible to have a foreign owner for LLCs in the state, but do you think that would do it, or need definitely a person in the US?

    As per the bank account I have tried using Payonner before, and it essentially works as a bank account, as long as the entity sending money to the account is a business. Do you think that would work too?

    Again, thank you for your help!

  4. #4
    Senior Member Reputation points: 216519
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    Quote Originally Posted by xhuljo View Post
    That is great information, thank you for sharing! In fact I was thinking I can create an LLC in Delaware through an agent. I know it is possible to have a foreign owner for LLCs in the state, but do you think that would do it, or need definitely a person in the US?

    As per the bank account I have tried using Payonner before, and it essentially works as a bank account, as long as the entity sending money to the account is a business. Do you think that would work too?

    Again, thank you for your help!
    Wyoming is cheaper and easier and faster. And anonymous without a subpoena. However, unless you have the US person, the bank account and the ID would still be an issue. A lot of the sub-prime guys may be willing to fund a wise.com, which is much cheaper than Payoneer. Payoneer takes 2%, Wise is 0% to receive money, and takes a conversion fee of less than 1% depending on the currency. The difference is the Payoneer takes on foreign corporations, giving them a US transfer account. But, none of the funders will sign on a non-US LLC in an ISO agreement. I've done it with many ISOs in the past (I loved the time I sent something like $5,000 to Bangladesh), but you need the US LLC with the EIN. Like I said, the best way to do this is through a 3rd party American citizen.

    If you're a US citizen, then it works really simply and you won't have any problems. I can direct you how if you send me an email. I just set up a Wyoming entity for a friend this week. If you know what you're doing, it takes about 2 days start to finish. And there are services that do it for you.

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