[Steven_O]

IDEA: Sean (DF or Debanked) should provide a certification of sorts where certain tests and background checks are done... those who pass get a "blue check" style on their profile... spot checks (shopped calls) can be performed by calling the business and ensuring the broker/lender are acting according to their "certification"... this website, is the leader in the industry, and could really help clean up the mess.

Or we can wait till the government steps in and does it.

[Sean Cash]

Or we can wait till the government steps in and does it.

The government already stepped in and did it. All brokers and funders already have to submit to criminal background checks and register with the state of Virginia if they want to do deals with Virginia merchants. The deadline to sign up was last November. Less than a dozen brokers registered. About 100 funders registered. There are penalties if you're caught not being registered. There are exceptions to the registration rule if your company was already registered in Virginia etc. Only a lawyer can offer proper guidance here.

All registered parties can be viewed here: https://www.scc.virginia.gov/getatta...4eb4/sales.pdf

I think DailyFunder is open to the possibility of blue checkmarks or such for employees on here who work for a company with a CA, VA, UT, license etc. What do you all think about that?

[TheConfidentBroker]

The government already stepped in and did it. All brokers and funders already have to submit to criminal background checks and register with the state of Virginia if they want to do deals with Virginia merchants. The deadline to sign up was last November. Less than a dozen brokers registered. About 100 funders registered. There are penalties if you're caught not being registered. There are exceptions to the registration rule if your company was already registered in Virginia etc. Only a lawyer can offer proper guidance here.

All registered parties can be viewed here: https://www.scc.virginia.gov/getatta...4eb4/sales.pdf

I think DailyFunder is open to the possibility of blue checkmarks or such for employees on here who work for a company with a CA, VA, UT, license etc. What do you all think about that?

Agree. Do a poll or survey. Cut the sponsors that don't comply. Check drivers licenses and real names/employment/contract at conferences/events so we're not signing up with the "Frank Jacobs" of the world. Make it known that all because you're on forbes council, you're not God and unless you are working with an Altfi association of sorts and on the board - you can't just overhaul with promotions of products that maliciously stack and attack your long standing sponsors.

Also... some mods would be nice Cant have it all but we can try.

[mistamca]

I think DailyFunder is open to the possibility of blue checkmarks or such for employees on here who work for a company with a CA, VA, UT, license etc. What do you all think about that?

Meh. I would say that there are more employees who steal than companies who steal. The checkmark could give a false sense of confidence. I also do not feel bad for people who get backdoored when they have done ZERO due diligence.
I think more active moderation will go further imo. For example, if someone claims that they fund in CA, then they should be required to list their license in the post or the post will be removed and then there is a 3-strike policy.
You could also have a new user stat of "negative posts" where you allow members to vote on any post that they create.

[TheConfidentBroker]

DF had over 4,000 users online recently and maybe 30* active with a few blasts from the past chiming in. The power of this sometimes chaotic forum can't be replicated and is here to stay. Up until recently, the "sponsors" vs. solicitors haven't been an issue and realizing that over 90% of ISOs and Funders are operating illegally* is an eye opener. These issues have impacted those who don't do the mca 2nd position up BS - the ones that never cared about these things are now. You can't just say "nope not my problem" anymore.

I have an extensive Black List and Crack List - Crack list being the "legal" but not ethical and all because it's "legal" doesn't mean its right but what can Sean do? He's attacked constantly and threatened to take action because he hosts the platforms and the parties. He can't control everyone but there is some changes he can make to level the field BUT what are the Funding Companies going to do to follow suit?

Most* Funding Companies are the enablers and the problem. Some have blinking advertisements on here > some are positing promos for their Funder but Sean can't ban or say "no" if it's "legal." To some out there - the forums, networking events, and online access to solicit is their lifeline. What happens when you cut that off? You have a lot of angry people going after one guy. How freakin scary is that?

Cleaning up the mess isn't as easy and there needs to be an unbias approach but as of right now - in this moment - people are frustrated and their air circulation is getting cut - The last thing you want is 4am texts and horse heads delivered at your door.

[BR-Nightmare]

The last thing you want is 4am texts and horse heads delivered at your door.

...

[TheConfidentBroker]

https://youtu.be/yhZ0TKdgJGg

[N_Snoot]

Also how is ProVenture not on this list straight crooks not only do they backdoor your deal then they fund them over only ten days to ruin the file all with the promise of a line of credit or unrealistic term loan - if you ever see Bridge Street Capital in a deal right after you submit to ProVenture don’t be too surprised that’s their closet shop

[Steven_O]

Without naming names... here is what BARD (Google AI) says about our industry and organized crime (allegedly):

"In 2016, a federal judge in New York sentenced a member of the Mafia to 10 years in prison for using MCA loans to finance his criminal activities.

In 2017, the FBI arrested and charged 14 people with running a $100 million MCA fraud scheme that was linked to the Mafia.

In 2018, the Consumer Financial Protection Bureau (CFPB) sued an MCA lender for using deceptive and predatory lending practices. The CFPB alleged that the lender was linked to organized crime.

In 2019, a federal judge in California sentenced a member of the Yakuza to 12 years in prison for using MCA loans to finance his criminal activities.

In 2020, the FBI arrested and charged 10 people with running a $50 million MCA fraud scheme that was linked to the Triads.

In 2021, the Consumer Financial Protection Bureau (CFPB) sued another MCA lender for using deceptive and predatory lending practices. The CFPB alleged that the lender was linked to organized crime.

In 2022, a federal judge in New York sentenced a member of the Russian Mafia to 15 years in prison for using MCA loans to finance his criminal activities.

These are just a few examples of the many court cases that have been brought against MCA lenders and organized crime. These cases demonstrate that organized crime is a significant problem in the MCA industry. Organized crime groups are attracted to the MCA industry because it is a relatively unregulated industry that provides them with an opportunity to make money quickly and easily. Organized crime groups use MCA loans to finance a variety of criminal activities, including extortion, racketeering, and money laundering."

Umm... with that said... I'm done posting.

[srslyfunding]

Additionally, add to this shady broker/shady lender list "Fast Funds Group" - merchant I funded before awhile ago forwarded me an email from them this morning. Took a 1.32 position w them a couple months back where their broker verbatim promised: "All options qualify for the credit line platform (100% interest forgiveness) and our interest forgiveness also applies on any renewal which you are eligible for at 50% positive payment history (26 weeks)." Claims he's been trying to reach his broker over there for a couple days now to pre-pay the loan in full (he also promised "100% interest forgiveness at anytime of prepayment") only to realize his number has been blocked. They apparently advertise online as a "private equity group"

[SmartAdvanced]

Funny how not one of the funders on this list, are registered in Virginia.

What does it say about them?

https://www.scc.virginia.gov/getatta...4eb4/sales.pdf

[goldenhippo80]

Funny how not one of the funders on this list, are registered in Virginia.

What does it say about them?

https://www.scc.virginia.gov/getatta...4eb4/sales.pdf

That they can't pass background checks lol. All the washed up wall street criminals turned funders

[ADiamond]

All the washed up wall street criminals turned funders

Don't even give them that much credit. Wall street nothing, lacking education and basic human decency. Straight up grime balls. They'd rip off their own mother.

[kevin@rossi]

Funny how not one of the funders on this list, are registered in Virginia.

What does it say about them?

https://www.scc.virginia.gov/getatta...4eb4/sales.pdf

Do they have this for Utah ?

[FundingCaptain]

It doesn't help that the shady brokers are coaching the merchants on every aspect (especially the merchant interview) to try and get funded. On our merchant interview we ask the merchant if the broker promised them additional funding after taking our advance. we then further explain that there are brokers taking the money from the advance in promise of a large bank loan and then not come thru on their empty promises.

Unrelated but in the same shady lane, I had a merchant call in 2 weeks after getting funded, asking to reduce his payments. The Shady iso had told him to call in 2 weeks later to reduce the payments and he stacked us within those 2 weeks so now the merchant cant afford it. He sent me screen shots of the texts from the broker stating that he can turn our 6 month term into a 8-12 month term by screwing us over.

[fundingsmbs]

There needs to be an overhaul of this industry. licensures, verifications of funder's actually being funders and having a physical office location, recourse for backdooring, recourse for brokers who stiff funders, etc etc. DF/Debanked is in a unique situation to assist in this effort as they collect banner and sponsor advertising $ and there should be a vetting process before allow these companies to market to brokers. as regulations in states are cracking down, the industry needs to figure out internally, how it's going to fix a lot of these problems on it's own as well.

[Sean Cash]

Licensing - this is happening in some states but it only applies at the company level, not the individual sales rep level. I'm not familiar with any initiative for individual licensing unfortunately, which would probably serve the industry better.

Verification of a funder being a funder, recourse for backdooring, recourse for brokers who stiff funders - This is basically all just governed by contracts. Does your ISO agreement stipulate what the other party can or can't do with the file you send them? And if caught breaching it, does it offer a remedy? Same with the other way around. So how do you hold the other party accountable if they breach? Well, you can sue them and this is where people in the industry give up 90% of the time because lawsuits cost money and take time and may lead to unwanted discovery. So people tend to write off the experience as a cost of doing business. Regulation won't solve basic b2b contract disputes that people just refuse to pursue on their own.

There are some very big brokers in this industry who stress very strongly how important it is to have lawyers redline agreements before establishing a business relationship. It takes time. It costs money. It may prevent some relationships from actually moving forward. But it will prevent a lot of headache.

Take the care to perform due diligence, negotiate contracts, conduct background checks, and then only then decide to move forward if it makes sense. Too many people skip these steps because they prioritize speed of forming the relationships to get the deals funded above all else.

[Kevin Henry-Seacoast]

Licensing - this is happening in some states but it only applies at the company level, not the individual sales rep level. I'm not familiar with any initiative for individual licensing unfortunately, which would probably serve the industry better.

Verification of a funder being a funder, recourse for backdooring, recourse for brokers who stiff funders - This is basically all just governed by contracts. Does your ISO agreement stipulate what the other party can or can't do with the file you send them? And if caught breaching it, does it offer a remedy? Same with the other way around. So how do you hold the other party accountable if they breach? Well, you can sue them and this is where people in the industry give up 90% of the time because lawsuits cost money and take time and may lead to unwanted discovery. So people tend to write off the experience as a cost of doing business. Regulation won't solve basic b2b contract disputes that people just refuse to pursue on their own.

There are some very big brokers in this industry who stress very strongly how important it is to have lawyers redline agreements before establishing a business relationship. It takes time. It costs money. It may prevent some relationships from actually moving forward. But it will prevent a lot of headache.

Take the care to perform due diligence, negotiate contracts, conduct background checks, and then only then decide to move forward if it makes sense. Too many people skip these steps because they prioritize speed of forming the relationships to get the deals funded above all else.

Sadly...Most times the first question asked is "How much money do I make"? That should be far down the list before asking who? what? why? How?
99.9% of the posts on the forum is about somebody screwing somebody else. You rarely see a post about successes. 100% of the time somebody got screwed is because they did little to NO research on whom they were attempting to do business with......

[OC Funder]

Sadly...Most times the first question asked is "How much money do I make"? That should be far down the list before asking who? what? why? How?
99.9% of the posts on the forum is about somebody screwing somebody else. You rarely see a post about successes. 100% of the time somebody got screwed is because they did little to NO research on whom they were attempting to do business with......

Max commission shouldn't be the end all, but I don't think it's crazy for a broker to make sure compensation will cover their marketing expenses. When you applied for your job there might've been many factors that went into your decision but potential income was probably pretty high on the list. I do agree that you need to be careful whom you do business with!

[mistamca]

Isn't this what funder intel does or do I have a new programming project because a verification/review platform sounds like a neat project

[admin]

We will be implementing something soon to increase transparency on this forum.

[Bcooper]

We will be implementing something soon to increase transparency on this forum.

can we have a sneak peak as to what that will be?

[Fundthis!]

If you have any to add, please share. These funders have been caught with shady practices. Carroting the day after funding, promising lines of credit for taking 1.699 with 20% fees and so on.

Advance Capital
All Shore Capital
Art Funding
Everyday
Family Funding Group
Go Fund
Image
Independent Fund
Jett Funding
Master Fund
Puttnam
Redstone
Regal Capital Group
Revive Capital
United
Wincap
World Global

Adventure Funding Group

[Fundyman]

& I'm reading all of this quite a bit too late... if I had the time, I would've added to the list too.

[Loading]

It's never too late to add!