[NEWCDAM]

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?

[Zonefund]

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?

What position was this, term, factor, commission?

[Zonefund]

Their websites down it seems

[NEWCDAM]

2nd position - 70k . 12pt

[Zonefund]

2nd position - 70k . 12pt

Factor? Term?

[simonwein12]

Why on earth would you even work with a company like that? No one has ever heard of them

[NEWCDAM]

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.

[David6ix]

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

[NEWCDAM]

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

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.

[simonwein12]

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.

Always ask around about the company & people before just signing up if you never heard of them before.

[ridextreme]

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.

Of course it's your problem. They stiffed you, didn't they?

It's not about making sure the merchants pay. It's trusting the funder to actually pay you.

Just use reputable funders, there's enough of them out there that we don't have to rely on these fly by night shops.

[diditevenfund]

Of course it's your problem. They stiffed you, didn't they?

It's not about making sure the merchants pay. It's trusting the funder to actually pay you.

Just use reputable funders, there's enough of them out there that we don't have to rely on these fly by night shops.

This is so spot on. It blows my mind how everyone wants to "give the funder a shot". Just use the real ones that are in banks often. Why risk your clients info and relationship sending to randoms?

[NEWCDAM]

This is so spot on. It blows my mind how everyone wants to "give the funder a shot". Just use the real ones that are in banks often. Why risk your clients info and relationship sending to randoms?

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.

[Chambo]

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.

Until someone actually sues them for breach of contract, there is ZERO incentive to follow through on their end.

[Oxforddan]

Until someone actually sues them for breach of contract, there is ZERO incentive to follow through on their end.

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.

[ridextreme]

They're based in Canada but funding U.S. Businesses? That should have been your first red flag.

[Zonefund]

You must be with OnTap with all of these paragraphs Lol. Pay the broker. They breached our contract and there's nothing else to discuss.

IF A CONTRACT SAYS PAY WITHIN 7 BUSINESS DAYS AND THERES A 30DAY CLAWBACK, BUT INSTEAD RATHER PAY COMMISSION AT THE END OF THE CONTRACT BECAUSE THEY'RE SCARED, THEN THEY SHOULD CLARIFY THAT SO WE CAN MOVE ON AND NOT WASTE OUR TIME!! THEY CAME UP WITH THE CONTRACT SO THEY AGREE THAT IT'S THEIR LIABILITY AND RISK NOT OURS. WE HAVE DONE OUR PART.

OUR CLIENT PAYS DAILY REGARDLESS AND THERE IS NO DEFAULT. SO THE LONG PARAGRAPHS HAVE NOTHING TO DO WITH US. THE FUNDER HASN'T DONE RIGHT BY THEIR BROKER AND THAT IS THE BOTTOM LINE. NOBODY WILL WORK WITH YOU IF YOU'RE DOING THAT!

Stack the deal. Theyll def renew behind your back, so, stack it asap so u can renew the 3rd pos

What was the term on the deal brother?

[brandon_]

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..

[Zonefund]

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.

[NEWCDAM]

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..

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?

[Zonefund]

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?

If he missed 3 payments, legally, you're ****ed.

You were better off waiting 60 days to see if they pay.

[ridextreme]

You were better off waiting 60 days to see if they pay.

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.

[diditevenfund]

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.

Lot of dudes out there living 9k Vader to 9k Vader.

[diditevenfund]

Feel like this did not go the way OP hoped (obtain roaring support etc)

[Kevin Henry-Seacoast]

Admin: Is there a way to put an entire tread-not a person on ignore?