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06-07-2024, 11:24 AM #1
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- Dec 2023
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Ontap capital - debate
Who wants to do broker deals with a scammy lender?
How does a canadian lender get to go against their own contract just because they are in canada?
The broker agreement says lender must pay commission within 7 business days with a 30day clawback.
Told us (the broker) we won't get paid on a deal until it's paid off. It has been 19 days now but they are telling us because a few payments bounced (but were paid) they are withholding for 3 months until the loan is majority paid because the account is in default, but the account never defaulted.
How is that even possible?
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06-07-2024, 11:28 AM #2
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- Aug 2018
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- 843
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06-07-2024, 11:29 AM #3
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- Aug 2018
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Their websites down it seems
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06-07-2024, 11:46 AM #4
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- Dec 2023
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2nd position - 70k . 12pt
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06-07-2024, 01:49 PM #5
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- Aug 2018
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06-07-2024, 11:37 AM #6
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- Aug 2019
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Why on earth would you even work with a company like that? No one has ever heard of them
Simon Wein
CEO- Radiance Funding
P:516.509.9788
W: Radiancefunding.com
E:Simon@radiancefunding.com
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06-07-2024, 11:42 AM #7
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- Dec 2023
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- 58
Decided to give them a chance and even called the merchant to make sure they got back on track. None of our clients ever defaulted because we keep communication. Apparently something minor happened, and the lender was ok with it. The merchant has triple the funds sitting in their account. But when it comes to paying us, they basically don't even care to. Like they are penalizing us for something that isn't even our fault. We actually aided the situation.
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06-07-2024, 11:46 AM #8
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- Oct 2021
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- 52
most likely a white label "funder" and they dont want to get left holding the bag on the commission if the real lender does a clawback
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06-07-2024, 11:52 AM #9
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- Dec 2023
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- 58
That isn't our problem if we are doing what is necessary to make sure they stay on track and they are paid. Most brokers don't even do that. What are we working for, nothing? How do they get to breach their contract with us? They are in default with us! How do we enforce that like they are enforcing their contract with the merchant?! It's blatant disregard.
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06-07-2024, 11:57 AM #10
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- Aug 2019
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- 164
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06-07-2024, 12:02 PM #11
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06-07-2024, 12:07 PM #12
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- Mar 2024
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06-07-2024, 12:19 PM #13
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- Dec 2023
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They got them the seemingly best terms and the merchant was happy. Reputable lenders weren't offering those terms to them. We really went above and beyond to get this deal done, and now are on the shortest end of the stick with a breached contract for hypothetical reasons.
But again my thing is, where is our real protection as a broker because apparently our simple contracts are basically meaningless to these lenders.
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06-17-2024, 01:33 PM #14
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06-17-2024, 01:35 PM #15
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- Jul 2015
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- 215
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06-07-2024, 01:28 PM #16
They're based in Canada but funding U.S. Businesses? That should have been your first red flag.
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06-07-2024, 01:53 PM #17
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06-07-2024, 02:33 PM #18
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- Apr 2020
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If they are missing payments within the first 30 days, you really have no leg to stand on. You're at the mercy of whoever who funded the deal. It doesn't matter if they paid it back. It can easily happen again. If you lend out $30,000 for example, and in the first 30 days the customer misses 4 payments, how are you going to feel about sending the broker a commission? Said commission will most likely have to be clawed back, and then never returned which adds to the loss that is already happening. The full bag is held by the funder... SO....Maybe they are a white label, maybe they aren't, but in either case a commission needs to be paid out and they are clearly worried about a default. So common sense, don't pay it out until most of it is recouped. You should be happy with that in all honesty. Most of the time, they will just say its in default and you're out of luck.
There are 2 sides to every story..
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06-07-2024, 02:56 PM #19
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- Aug 2018
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- 843
They gave 160 days but whats the factor rate dude? Why hide this? They obviously know what deal it is based on the info given.
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06-07-2024, 04:46 PM #20
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- Dec 2023
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Nothing about what you said even sounds right. Whether that's the way things are or not. This is how lenders X a broker out of their hard earned money. That is modern day slavery, period. There is a contract in place for a reason. Well why doesn't it protect the broker the same way it protects the funder?
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06-07-2024, 06:08 PM #21
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06-07-2024, 09:20 PM #22
Or at least check the agreement first for clauses regarding what they classify as a default, and what he'll be learning in this industry (welcome btw) is never to count your commissions before they hatch. Build a pipe line so when one or two deals get killed you have others working for your quarter so it's not as much of a let down.
Last edited by ridextreme; 06-07-2024 at 09:32 PM.
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06-07-2024, 09:32 PM #23
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- Mar 2024
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06-07-2024, 03:02 PM #24
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- Mar 2024
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Feel like this did not go the way OP hoped (obtain roaring support etc)
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06-20-2024, 11:53 AM #25
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,499
Admin: Is there a way to put an entire tread-not a person on ignore?
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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