[DavidBau]

Have you ever put money in a deal? The first bounce payment is always ominous - you worry the merchant moved bank accounts, closed shop, etc. Think about it like this, if the merchant missed the 5th payment on a term of 160 days, that is 3% of the deal paid in. The merchant is ALREADY having issues so early on.
I understand you got the merchant back on track, but that doesn't remove the risk of the merchant screwing the funder once you get paid. There are PLENTY of funders that would have defaulted the merchant and not said anything

[NEWCDAM]

Have you ever put money in a deal? The first bounce payment is always ominous - you worry the merchant moved bank accounts, closed shop, etc. Think about it like this, if the merchant missed the 5th payment on a term of 160 days, that is 3% of the deal paid in. The merchant is ALREADY having issues so early on.
I understand you got the merchant back on track, but that doesn't remove the risk of the merchant screwing the funder once you get paid. There are PLENTY of funders that would have defaulted the merchant and not said anything

And again, if they had an actual DEFAULT we would understand because that is in our CONTRACT. The way we are being dealt with is NOT in our contract!

[Oxforddan]

And again, if they had an actual DEFAULT we would understand because that is in our CONTRACT. The way we are being dealt with is NOT in our contract!

So sue them instead of crying on dailyfunder. Or don't, at this point who cares. All you are doing is making yourself look worse.

[NEWCDAM]

So sue them instead of crying on dailyfunder. Or don't, at this point who cares. All you are doing is making yourself look worse.

How we look to another person doesn't matter actually. We're doing nothing wrong by coming to a forum and having an important conversation, that's what it's for.

It's actually creating awareness and generating both of our companies new LIKE-MINDED business partnerships and opportunities.

More than 10% was paid on this advance already, and 30days makes next week. We did right and our part, and this never needed to happen to us.

These situations are common because brokers like to gaslight and accept things the way they are, even if it’s not right.

MCA funders thrive off of not paying out commissions, feeling ISOs can’t and/or won’t do anything to counter their decisions.

ISOs and Funders have agreements in place for a reason, and if ISOs did anything to breach that agreement, they would not hesitate to enforce their commitment to it.

If they get to regulate on that convoluted seemingly one-sided agreement, we can as well. That’s what it’s there for.

[ridextreme]

And again, if they had an actual DEFAULT we would understand because that is in our CONTRACT. The way we are being dealt with is NOT in our contract!

According to the funder, they started bouncing payments withing their first week. Your incredible merchant, of whom you have an outstanding relationship with, defaulted.

[NEWCDAM]

According to the funder, they started bouncing payments withing their first week. Your incredible merchant, of whom you have an outstanding relationship with, defaulted.

If they defaulted, they would be in collections. They do not have an active and valid defaulted advance. Until they do, they have not. Legally and Respectfully.

[NEWCDAM]

Even the dictionary defines “default” as failure to fulfill obligation or failure to repay. The client paid and is paying, further fulfilling their obligations. People want to incorrectly use the word to manipulate a situation then force people to believe that’s what it is and it’s not.

Funders have all this business and money to lend, but want to withhold a small check from a small broker?

What is that even about? Its cant be about the money.

The funder is the only entity in default, and not fulfilling their end of an obligation.

Get real.

[ridextreme]

Get real.

nah, it's you that needs to "get real", not me. I've been doing this a long time (obv much longer than you).

You're great merchant bounced payments within their first week of being funded. The funder told you there's gonna be a longer waiting period to get paid. If you don't agree with it, hire a lawyer and sue them instead of crying your eyes out on a public forum looking for people to feel sorry for you (and if you do hire a lawyer, he'll probably read the ISO agreement and tell you the funder was within their rights).

This industry doesn't seem like it's a good fit for ya.

[NEWCDAM]

(and if you do hire a lawyer, he'll probably read the ISO agreement and tell you the funder was within their rights).

This industry doesn't seem like it's a good fit for ya.

News Flashhh*** Laws have changed for NY and CA recently.


We are a NY ISO. We have claims under the CFDL, UDAAP laws, breach of contract, and tortious interference theories. Our clawback period is only 30days and there was never a legal default within that time period.

The NY CFDL applies to any "commercial financing transaction," which includes MCAs, that are offered or provided to a "recipient" located in New York state.

This means the law can reach beyond just New York-based funders and apply to out-of-state funders doing business with New York merchants or brokers.

The NY CFDL contains specific requirements around the disclosures and contractual terms that must be provided to MCA brokers.

For example, the law limits the duration of commission clawback provisions to up to 4months, and prohibits certain deceptive practices by funders towards brokers.

The NY CFDL gives the New York Department of Financial Services the authority to investigate violations and impose fines of up to $2,000 per violation.

If a MCA funder is found to have violated the broker-related provisions of the NY CFDL in its dealings with a New York broker, the funder could be subject to these civil monetary penalties.

Not only that but can also be sued for untimely wages due to the broker. The funder is essentially purchasing labor services from our company, and we use that money to cover expenses and the wages of the workers providing the services.

We have the right to dispute for up to 100% on the original commission amount plus lawyer fees as per contract.

Not the funder telling us we will get paid in December. Lol

You guys need to learn to respect your laws and brokers.

Carry on with your busy days, hope fathers day was great.

[Oxforddan]

Your customer DEFAULTED on their agreement. Even if they end up paying, they still did not pay on the agreed terms since they bounced a payment. The idea that because they are paying now makes them not a default is crazy. If a merchant stops on the first payment but 3 years later pays in full, that is still a default. With that being said you seem to know a lot about the law. Maybe you would do better in that line of work. Clearly this isn't for you.

[Top G]

Just fund another deal. You're like a broken record. No one is agreeing with you lol

[NEWCDAM]

Your customer DEFAULTED on their agreement. Even if they end up paying, they still did not pay on the agreed terms since they bounced a payment. The idea that because they are paying now makes them not a default is crazy. If a merchant stops on the first payment but 3 years later pays in full, that is still a default. With that being said you seem to know a lot about the law. Maybe you would do better in that line of work. Clearly this isn't for you.

What is this consistent desire for us to change our line of work? Threatened we cannot possibly be right because that’s what you are used to? Literally just defined the word “default” for you and you still dont understand “stop payment” does not mean “default”. Not in any literary sense, and not in law.

[NEWCDAM]

Just fund another deal. You're like a broken record. No one is agreeing with you lol

Maybe if the record continues to play over and over, it will reprogram everyone's mind to realize they've been manipulated into believing lies; and brokers actually have contractual rights that can be enforced.

[Top G]

Maybe if the record continues to play over and over, it will reprogram everyone's mind to realize they've been manipulated into believing lies; and brokers actually have contractual rights that can be enforced.

No one is on your side, everyone is looking at you like a clown. Quit crying keep dialing

[NEWCDAM]

No one is on your side, everyone is looking at you like a clown. Quit crying keep dialing

If no one was on my side there wouldn’t be an entire list of regulation clauses and rules in our favor, nor would we have an inbox full of new funders to work with.

[Top G]

If no one was on my side there wouldn’t be an entire list of regulation clauses and rules in our favor, nor would we have an inbox full of new funders to work with.

Hopefully you learned your lesson and vet them before you start sending deals lol.

[ridextreme]

Hopefully you learned your lesson and vet them before you start sending deals lol.

And the other way around, these rookie ISO reps who come here looking for easy leads are gonna be in for a big awakening too if they actually sign this guy lol.

[abfunders]

If no one was on my side there wouldn’t be an entire list of regulation clauses and rules in our favor, nor would we have an inbox full of new funders to work with.

The disconnect here is defining a default. Because you agree that the broker should not be paid on a default, right? So let's do it together.

Here's the industry standard:
The merchant agrees to remit X% of their daily gross revenue. That is estimated to be approximately $Y per day.
If they don't do that, then they are reneging on their contractual sale of the gross revenue.
Clawback and "not paying commissions" are actually the same thing. Either pay and take back, or don't pay. Most funders will pay you (the ISO) if the merchant does finish out without true collections.

Here's your definition:
If the company didn't sell/send it off to a third-party collections agency, it's still in 100% good standing.

If the merchant bounced a payment and immediately called the funder and said "here's the missed payment", that might change things. Did they do that? Did you encourage the merchant to do that?

If you don't have a contractual definition of "default", then you have to look at the industry standard. And as you have seen from the comments here, the "industry standard" is not what you thought.

It would have been better to start the thread "here's what happened, is this considered a default and how can I convince the funder to pay the commissions before the end of the term?"

[NEWCDAM]

If the merchant bounced a payment and immediately called the funder and said "here's the missed payment", that might change things. Did they do that? Did you encourage the merchant to do that?

If you don't have a contractual definition of "default", then you have to look at the industry standard. And as you have seen from the comments here, the "industry standard" is not what you thought.

Yes the merchant did exactly that and has been paying since on time. The funder only pays on the 1st and 15th. The contract states we must get paid within 7 business days with a 30day clawback. They called me on the 1st and told me they cant pay me until he makes the missed payment and pays on time. He paid and is paying on time, but they still don’t want to pay.

The clawback period is basically over, but now the funder just doesn’t want to pay until December when the term is over and he cannot just do that. They should've paid us today but would rather us get our lawyer involved, and pay us their share of profits on the deal at this point in fines for violating regulations they dont agree with.

[NEWCDAM]

And the other way around, these rookie ISO reps who come here looking for easy leads are gonna be in for a big awakening too if they actually sign this guy lol.

Again, None of our clients ever defaulted because we keep contact and encourage them to keep a good payment history. Which is why we maintain great relationships with both Merchants and Funders.

This merchant trusts our instruction more than anyone, since we’ve been working with them since last year. They refused to even do a deal with another broker, or a funder without making sure our company benefit from it as well.

There’s no reason we shouldn't get paid within our contracted clawback period. It took a-lot for the merchant to even get to a second position, thanks to us.

No way should we be getting stiffed like this. Its basically like we have been working all these months for with them for no reason.

[ridextreme]

This merchant trusts our instruction more than anyone, since we’ve been working with them since last year. They refused to even do a deal with another broker, or a funder without making sure our company benefit from it as well.

A merchant is so indebted to you so much that they wanna make sure that you personally are making money off of every deal they touch but then they go ahead and default in their first week of payments?

[diditevenfund]

Again, None of our clients ever defaulted because we keep contact and encourage them to keep a good payment history. Which is why we maintain great relationships with both Merchants and Funders.

This merchant trusts our instruction more than anyone, since we’ve been working with them since last year. They refused to even do a deal with another broker, or a funder without making sure our company benefit from it as well.

There’s no reason we shouldn't get paid within our contracted clawback period. It took a-lot for the merchant to even get to a second position, thanks to us.

No way should we be getting stiffed like this. Its basically like we have been working all these months for with them for no reason.

If you have never had a default you are #1. Brand new or #2. very low volume. I dont care how good you are, you WILL get defaults if you actually do more than a deal here or there.

[JasonBishop]

You sound like you'd be a nightmare to deal with on any level. Plus the free email tag. You're clogging up the daily digest.

[NEWCDAM]

Yea but OP doesn't have the kahunas to do it. Would rather just cry on here instead of doing something about it, then posting the outcome of the courts.

Again, lol we maintain relationships and are actually working with some of the best lawyers in the US right now.

We always make sure the best lawyers to work with us. Thats the problem you think we cant or cant afford it so you break contracts to try to be in control and think somebody won’t come for you.

This is actually the wrong ISO to play with.

Just because Im on here doesn’t mean nothing is being done outside of here. lol

[Oxforddan]

Again, lol we maintain relationships and are actually working with some of the best lawyers in the US right now.

We always make sure the best lawyers to work with us. Thats the problem you think we cant or cant afford it so you break contracts to try to be in control and think somebody won’t come for you.

This is actually the wrong ISO to play with.

Just because Im on here doesn’t mean nothing is being done outside of here. lol

People like you are literally the reason i don't take broker business. Like Jason said.