[bostriba]

After spending 6 weeks attempting to fund our client, Yellowstone furnished an offer

3(yes 3) of us worked a deal that was for 8K- a mere 8k

worked it every day of the week-weekends and overnight

We got a contract from Yellowstone-signed by client with stips in late December - and it was eventually funded

We find out today that commission was paid to some other broker due to the 'timing' of our application

I received an apology from Yellowstone and and a very poor explanation - and a very unacceptable 'that's the way it does' response

Looking for feedback on how to remedy the wrong

we just worked too hard on this little deal to be pushed aside

any similar stories?

[isaacdstern]

Our rules on exclusivity are crystal clear, this specific deals exclusivity expired and was submitted by another outside iso and we funded it for them. We paid the outside iso a commission. Yellowstone did not make $1 extra dollar by not funding it for you and funding for the other iso

[bostriba]

The merchant needs to know which broker has done the job for him. We - as a broker also need to know that the deal is ours or not- It can not be a complete surprise to us that despite our signed contract and communications to that point - that the deal was not ours. MY RULES OF FAIR PLAY say that we need to be kept up to date on status of deals. We worked too hard on this deal to take away nothing. I would be afraid to submit deals to you in the future if I were to believe that you would just hand then to another broker-and not give us any warning that our submission was kicked out. Remember its just not the underwriter who builds a relationship with merchant-but the broker as well. The merchant in this case thought that we did the deal for him-for better or worst- and I suspect worst.

[WhoisKingsley]

I have chose to no longer have part of this issue as I do many deals with YSC. This issue should be looked at, yes... But venting so prematurely is uncalled for.

[bizloanbroker]

I probably do 20 deals a month with yellow/ Avi Dahan and their rules happen to be super clear. I win some and I lose some but it is always very consistent

[bostriba]

When we the broker believe that we genuinely earned the commission and the merchant also believes he was funded by that broker (us)-and that turns out to be FALSE - THEN THERE IS A REAL PROBLEM!!!

Super clear rules mean that we should be advised that the deal we had yesterday - and that is not ours today - should be communicated to us. Otherwise we would continue to work Yellowstone deals for our merchants - never suspecting -that our hard work would be for the benefit of other brokers. Its absurd.

[bizloanbroker]

maybe Isaac can confirm this but this is how I understand their rules on exclusivity:

You own the deal for 14 calendar days and the only way to extend that is to submit a signed approved contract. Once you do that they extend your exclusivity for another 14 days.

The way Avi explained it to me was that they receive about 5-600 files a day and most outside iso deals get sent in more than once so the rules on exclusivity are really important when working with them

Isaac-did I explain the rules correctly?

[isaacdstern]

yup Biz...that's pretty accurate!

Sounds like Avi is giving you good service, he is an animal and works his tail off for his isos

[Drizzle]

Avi is the hardest working man in the MCA space. Except Saturday's.

[bostriba]

Then why does the merchant truly believe that we were the broker for the deal. For all I know - he may have been ACH'ed by some other broker for an absurd amount and then attribute it to OUR FIRM. And never do business with us 'innocent victims' again. Don't you guys see that??

[bostriba]

How much thought process needs to be applied here to this? You thought it was our deal till today, the merchant thought it was our deal till today- whats there to be premature about. No congressional panel is required for this. Somebody was not communicating obviously.

[thecloser]

Deals don't always go the way we plan them to, regardless of how hard we work them. I have had some good conversations with Isaac when things run off the track and he has been very helpful. I also work closely with Gil at Yellowstone, I believe in them and would advise that if your not happy with your experience with them to contact them directly and try and resolve the issue, rather than search for a posse to justify your situation, when that will do nothing for you. Just my 2 cents.

[anonymous]

You do realize that lenders talk and you have likely been blacklisted by several due to this post, right?

YSC has clear rules on how long the deal is yours. They aren't going to notify you when every deal expires - no one will. You win some you lose some, it was an $8K deal....

[Sean Cash]

Having been in this position as an underwriter where 5 companies would all send in the same deal on a regular basis, the only way to handle dupe submissions is to set a policy and stick to it. It totally sucks if you're the ISO who lost the deal, but it's way worse when the funder treats every situation subjectively.

You will feel a lot better when the next deal you send there has been pending with someone else for longer than 14 days and you swoop in and win the client and the commission.

[bostriba]

Should I just keep my mouth shut?

I don't do 10 deals a day my friend-like everyone else

I have to fight for my crumbs

[Sean Cash]

Should I just keep my mouth shut?

I don't do 10 deals a day my friend-like everyone else

I have to fight for my crumbs

Nothing wrong with being mad. Being mad in your shoes is normal. I'd be mad, but it kind of is what it is. if the rules of engagement are 14 days, go out there and kill the next guy who can't close in 14 days. Or wait until your merchant is totally ready to execute and has sent you literally everything a funder might ask for and then send to them. Then you won't have to worry about a file dragging out for 6 weeks.

[bostriba]

The funding circumstances were a bit more complicated than I indicated

but at this point - I just plain give up

[Scott Williams]

There are so many funders out there to pick from. Find one that has a set up you are more comfortable with. Maybe you would rather work with a funder that has a 30 day protected period instead of 14 days. There isn't a shortage of funders......we see 100 spam this forum everyday!

[J.Celifarco]

Having worked with a lot of funders who have a lot of different rules on exclusivity, the only thing that matters is consistency with the rules. As long as a bank sets the rules and then sticks to them you can't complain. Nothing you can do here you don't have a leg to stand on. Situation sucks you lost this deal but one day you will be on the other side and you will be the one who benefits from the rules. Until then keep your head down and keep dialing

[bostriba]

I understand the 14 day argument but why is it that the merchant believes that we funded him?

Why is it that we ourselves believed we were the broker? What could have been done to communicate this at that final critical point?

Are you saying on day 14 it is just a crap shoot and fraught with confusion-with nobody really knowing who has got the deal?

[mcg168]

I think the only thing that should have been done is when you submitted the signed contracts, you should have been notified that another rep submitted the contract ahead of you.

On the bright side - this was a learning experience on a 8k deal, not 80k or 180k.

[channin19]

$8k deal is probably more trouble than it's worth. Especially if it took more than 2 weeks to close.

[WhoisKingsley]

The deal is being looked into. Within the time of submitting the final contracts and stips, the deal was "pending funding" but was negative in the account for about 10 business days. In this time, another broker submitted the same file. Once the file funded, it showed another broker turned in the file after the contract was submitted but the status wasn't checked. The commission debacle is being looked into.

In my opinion, the broker who sent the file in after the contract and stips were submitted should have nothing to do with this deal since the final process was already completed by broker #1. The wrong status was definetly put in for this file for it to be accepted no matter the 14 day exclusivity since it was in "pending funding" status...

Either way, Yes, YSC may have overlooked the situation but they are looking into it. This post could have definetly held off until a resolution was found.

[JSL23]

I understand the 14 day argument but why is it that the merchant believes that we funded him?

Why is it that we ourselves believed we were the broker? What could have been done to communicate this at that final critical point?

Are you saying on day 14 it is just a crap shoot and fraught with confusion-with nobody really knowing who has got the deal?

Not my business at all, but I am curious; were the Underwriters communicating with you as the Merchant was in the final stages of funding? Did you receive a confirmation email when they were funded? Or did the Merchant call you after the fact and let you know?

[WhoisKingsley]

The relations manager at YSC was in contact everyday from the time of submission (give or take a few days for the holidays). The funding confirmation was sent the time of funding and the merchant was in constant contact with Bostriba.