[JustInCase]

I called an ISO shop today about becoming an independent referral partner they constantly post traditional this, that and everything on fb. They have a lot of great google reviews regarding their traditional "banking" services and also do a lot of MCA they say. Anyway, I asked about the bank line of credit and was told they have friends in banking positions they refer qualified merchants to letting them keep whatever fees they make originating the lines through bank for themselves while the ISO is charging another 10% of total line off the line itself when funded by way of ACH/PSF. Is this legit? Might be idk. Is it legit as well to be charging PSFs for regulated bank related products without a license etc? It was out of the box to me just trying to see if legitimate in general.

[TheConfidentBroker]

No one wants to answer this but you know the answer.

I am sure this company is in long island.

All that glitters aint gold.

[Ehenek]

You do NOT need a license to sell bank related instruments. Think of the SBA. However, your specific scenario does not pass the BS test. What type of instrument are you interested in?

[JustInCase]

I'm really just researching options not looking for anything currently. I've worked for an MCA co now thinking of going independent. I don't want MCA to be my flagship product as there are merchants who qualify for better things. If what they do is legit see no reason I cannot just walk into banks and build the relationships myself. The referral program was being sold to me like they are only who could do it. That made me wonder why only them? With that, I figured ask df as it is the only place you can get a brutally truthful answer in this business.

[TheConfidentBroker]

I'm really just researching options not looking for anything currently. I've worked for an MCA co now thinking of going independent. I don't want MCA to be my flagship product as there are merchants who qualify for better things. If what they do is legit see no reason I cannot just walk into banks and build the relationships myself. The referral program was being sold to me like they are only who could do it. That made me wonder why only them? With that, I figured ask df as it is the only place you can get a brutally truthful answer in this business.

Do we know each other? Maybe we should.

[FunderFunding]

I'm really just researching options not looking for anything currently. I've worked for an MCA co now thinking of going independent. I don't want MCA to be my flagship product as there are merchants who qualify for better things. If what they do is legit see no reason I cannot just walk into banks and build the relationships myself. The referral program was being sold to me like they are only who could do it. That made me wonder why only them? With that, I figured ask df as it is the only place you can get a brutally truthful answer in this business.

Different banks have different requirements. Maybe they have/know a bank with more lenient requirements ooorrrrrrr they are just going to steal your file. lol

[abfunders]

I called an ISO shop today about becoming an independent referral partner they constantly post traditional this, that and everything on fb. They have a lot of great google reviews regarding their traditional "banking" services and also do a lot of MCA they say. Anyway, I asked about the bank line of credit and was told they have friends in banking positions they refer qualified merchants to letting them keep whatever fees they make originating the lines through bank for themselves while the ISO is charging another 10% of total line off the line itself when funded by way of ACH/PSF. Is this legit? Might be idk. Is it legit as well to be charging PSFs for regulated bank related products without a license etc? It was out of the box to me just trying to see if legitimate in general.

What Elon said, except I'll add that that doesn't apply to primary-residence real estate, where you actually do need a license. You can charge whatever fee agreement you want with your clients, and help them walk them to the banks. I've been doing this for 6 years and I work through other partners, because doing it in-house turns you into a one-trick-pony. It's a massive amount of work.

And like Elon said, you have to be very careful with the SBA. There are laws on that.

But yeah, banks don't pay referral fees on their LOCs, you need a fee agreement for that, that the banks may actually honor. There are NON banks that do that, but they're charging 18%+.

[abfunders]

I'm really just researching options not looking for anything currently. I've worked for an MCA co now thinking of going independent. I don't want MCA to be my flagship product as there are merchants who qualify for better things. If what they do is legit see no reason I cannot just walk into banks and build the relationships myself. The referral program was being sold to me like they are only who could do it. That made me wonder why only them? With that, I figured ask df as it is the only place you can get a brutally truthful answer in this business.

Researching is good. The biggest challenge is that the ROI on banking products is much lower, and they pay much slower. Leads are expensive, so you need to have cash to burn and wait on the ROI. You're not going to find and close a $10mm bankable deal so quickly. Hence why so many ISOs love MCA.

[Olderguy]

There are a couple of companies that offer bank LOC. Typically they charge 10% - 15% success fee and pay brokers 50% down to 30%. Midwest Corporate Credit, Lexington Capital, Fundfi, The Funding Group, and others...

Exploring options for a merchant, go in here and look under "providers" and you will find a lot of lenders in different lending categories.

https://www.funderintel.com/community

You can also reach out to super brokers who have access to lenders that you might not be able to reach due to their ISO requirements on submissions.

There are several companies who offer bank LOC, credit cards that charge 10% success fee and pay from 30% - 50%.

And you can also do some discovery to see if merchant qualifies for:

Personal loan
Hard money property loan
HELOC on primary residence - actually I have a company that can do this natioinwide that can be in first or second position and doesn't require a license.
Cash out on equipment or other assets
Equipment sale/leaseback to debt doesn't show up on balance sheet to qualify for better business loan.
SBA has multiple different programs.

There is a huge universe of lending options for merchants outside the MCA arena.

Reach out if you need help.

[Hedley Lamar]

I'm really just researching options not looking for anything currently. I've worked for an MCA co now thinking of going independent. I don't want MCA to be my flagship product as there are merchants who qualify for better things. If what they do is legit see no reason I cannot just walk into banks and build the relationships myself. The referral program was being sold to me like they are only who could do it. That made me wonder why only them? With that, I figured ask df as it is the only place you can get a brutally truthful answer in this business.

Do yourself a huge favor........
-Pick a handful of industries you know well AND have a need for financing during the prospect's lifecycle.
-Get to know the centers of influence that advise those industries: accountants, investment bankers, attorneys, industry associations, etc....
-Learn the various products up and down the cap table that could possibly help the companies during their life cycle: factors, asset based lenders, SBA lenders, banks, alternative debt funds, etc. Be sure those sources of capital also know these industries well.

Be methodical and pound.....pound again, and when you feel tired.....pound again. Be the go to advisors to companies in those industries that has great sources of capital. It will take time, but be very rewarding.

[Chambo]

I'm really just researching options not looking for anything currently. I've worked for an MCA co now thinking of going independent. I don't want MCA to be my flagship product as there are merchants who qualify for better things. If what they do is legit see no reason I cannot just walk into banks and build the relationships myself. The referral program was being sold to me like they are only who could do it. That made me wonder why only them? With that, I figured ask df as it is the only place you can get a brutally truthful answer in this business.

Banking reps cannot be officially linked to non-licensed lenders. In other words, no payments can legitimately go back and forth. So any fees charged by the bank cannot be sent to an ISO directly from the bank.

What you and your contact do over drinks off site? that's a different story. But 10% on top of everything else?

[Incbiz440]

I called an ISO shop today about becoming an independent referral partner they constantly post traditional this, that and everything on fb. They have a lot of great google reviews regarding their traditional "banking" services and also do a lot of MCA they say. Anyway, I asked about the bank line of credit and was told they have friends in banking positions they refer qualified merchants to letting them keep whatever fees they make originating the lines through bank for themselves while the ISO is charging another 10% of total line off the line itself when funded by way of ACH/PSF. Is this legit? Might be idk. Is it legit as well to be charging PSFs for regulated bank related products without a license etc? It was out of the box to me just trying to see if legitimate in general.

Referral fee from the bank, plus a PSF from the client? That's not out of bounds if it's not SBA. SBA caps fees at 3%/2%/.25% depending on loan amount and prohibits double dipping (can be paid from the bank or the client, but not both). Outside of that, to the best of my knowledge, banks can pay referral fees to ISOs, and ISOs can charge PSFs to the client. A bank or lender may have their own policy against PSFs or double charging in their agreements, but other than that I'm not aware of any general limitations for business lending.

[SendDocsPlox]

DailyFunder discovers the Representation Agreement

People have been doing this for a long time you know, LoanBuilder LOVED it once they found out about it

[JustInCase]

Appreciated.

[JustInCase]

Kind of what I thought as well.

[JustInCase]

This is excellent advice ty.

[JustInCase]

Ty I really appreciate you taking the time out for this.

[JustInCase]

I see your point ty.

[JustInCase]

Ty for this.

[JustInCase]

lol

[JustInCase]

I called an ISO shop today about becoming an independent referral partner they constantly post traditional this, that and everything on fb. They have a lot of great google reviews regarding their traditional "banking" services and also do a lot of MCA they say. Anyway, I asked about the bank line of credit and was told they have friends in banking positions they refer qualified merchants to letting them keep whatever fees they make originating the lines through bank for themselves while the ISO is charging another 10% of total line off the line itself when funded by way of ACH/PSF. Is this legit? Might be idk. Is it legit as well to be charging PSFs for regulated bank related products without a license etc? It was out of the box to me just trying to see if legitimate in general.

Appreciate all said ty!

[Griffinferro]

Text me 631.487.5696
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