[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?"

[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.

[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.

[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

[NEWCDAM]

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.

Freddy.

[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.

[NEWCDAM]

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

You don't take broker business because you cant get over on them? Im confused by that statement...

If a client bounced payments we would help you get paid up before your legal collections department would, so that's actually your loss I guess.

[BR-Nightmare]

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

If that is the case, your lawyer should have recommended you to not post anything on a public forum in regards to this as you could possibly set yourself up to be sued for possible defamation and slander.

[NEWCDAM]

This is exactly why there are rules and regulations.

You simply cannot make decisions based on pride, fear, and other emotions that have no basis, if there is already a contract in place.

Especially when the decisions you make can affect a livelihood and company.

You don't know what damage holding one's commission is actually doing on the other end, and the fact the funder doesn't care is called "negligence".

[NEWCDAM]

If that is the case, your lawyer should have recommended you to not post anything on a public forum in regards to this as you could possibly set yourself up to be sued for possible defamation and slander.

Having a debated conversation about what is going on, in order to find out opinions of other brokers and lenders is not slander or defamation. This is in fact PUBLICITY which is notice or attention given to someone or something by the media, where they previously had none.

Slander is the utterance of FALSE charges or misrepresentations which defame and damage another's reputation.

Defamation is the action of damaging the good reputation of someone.

If you feel he is right, then his reputation is not damaged.

We need to just start a Thread for vocabulary words at this point.

We've defined the true meaning of "DEFAULT, SLANDER, PUBLICITY, and DEFAMATION" already.

What new words will we come up with next?

[NeedmoreISOS]

Sounds like your not a big relationship guy. Keep your head up.

[NEWCDAM]

Sounds like your not a big relationship guy. Keep your head up.

Not big on ABUSIVE relationships. I will NEVER use a funder who won't pay same day, next day, or POSSIBLY within the same week again.

[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?

[Yankeeman07]

Not big on ABUSIVE relationships. I will NEVER use a funder who won't pay same day, next day, or POSSIBLY within the same week again.

Good to know - I rep for a funder that pays on the 8th Day or next closest Thursday - If anyone asks, 8th day falls on Tuesday, the pay the coming Thursday.

[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.

[diditevenfund]

This is exactly why there are rules and regulations.

You simply cannot make decisions based on pride, fear, and other emotions that have no basis, if there is already a contract in place.

Especially when the decisions you make can affect a livelihood and company.

You don't know what damage holding one's commission is actually doing on the other end, and the fact the funder doesn't care is called "negligence".

With all due respect, how big even is this deal? Are you in that bad of a position you cant pay your rep out of pocket while you work on this? If you are working with no buffer, it might be time to hit up Indeed.com and assess what you are doing.

[goldenhippo80]

With all due respect, how big even is this deal? Are you in that bad of a position you cant pay your rep out of pocket while you work on this? If you are working with no buffer, it might be time to hit up Indeed.com and assess what you are doing.

He must be pouring all his money into legal since he has some of the best lawyers in the US

[NEWCDAM]

With all due respect, how big even is this deal? Are you in that bad of a position you cant pay your rep out of pocket while you work on this? If you are working with no buffer, it might be time to hit up Indeed.com and assess what you are doing.

Thats what I’m saying !

They do not have a valid reason to hold our commission and are intentionally attempting to make us suffer at this point, seemingly in retaliation against us posting in this thread. That is also another illegal offense, causing damage.

The amount being withheld is not an amount that would make, break, or destroy their funding business, that they can’t pay us today.

Had they paid us within the stipulations of out contract, this thread would’ve never existed.

Every action has a reaction, and people rarely enjoy taking ACCOUNTABILITY for their negative actions. But to make us wait 6 months to get paid and there’s no ACTIVE default is ARROGANT and CONTROLLING.

Our contract also said they needed to make sure they were at least repaid 10%, and our client has well exceeded that amount.

There’s no reason for ANY funder to withhold an ISO fee until a deal is fully paid, unless for the purpose of being greedy.

Hence the reasoning for the new CFDL regulations.

[diditevenfund]

Thats what I’m saying !

They do not have a valid reason to hold our commission and are intentionally attempting to make us suffer at this point, seemingly in retaliation against us posting in this thread. That is also another illegal offense, causing damage.

The amount being withheld is not an amount that would make, break, or destroy their funding business, that they can’t pay us today.

Had they paid us within the stipulations of out contract, this thread would’ve never existed.

Every action has a reaction, and people rarely enjoy taking ACCOUNTABILITY for their negative actions. But to make us wait 6 months to get paid and there’s no ACTIVE default is ARROGANT and CONTROLLING.

Our contract also said they needed to make sure they were at least repaid 10%, and our client has well exceeded that amount.

There’s no reason for ANY funder to withhold an ISO fee until a deal is fully paid, unless for the purpose of being greedy.

Hence the reasoning for the new CFDL regulations.

Look this space is not for everyone, if a (what I guarantee you) small amount of money sends you into a frenzy like this ,I would strongly advise not being an ISO. You should have money in reserves, and not be relying on one deal. Not saying anyone is right or wrong, but typically when people get this explosive they are under extreme financial distress and running a shop is not a good position for someone that cant absorb a commission. What would have happened if it did not fund, close up shop?

[NEWCDAM]

He must be pouring all his money into legal since he has some of the best lawyers in the US

And the contract states that the prevailing party is entitled to recover it.