[Paperchaser]

im sure we can point out a few of these for the new isos

[WhoisKingsley]

How are you going to start this...


And stop there?

[Paperchaser]

samsonpartners is one who else

[J.Celifarco]

For a new ISO who doesn't know whats going on wouldn't it pay to start working with a more established iso rater then going direct.. They will probably make more getting a split on commission with a big ISO then they will getting 100% of a smaller number if they go direct. Not to mention this will help them learn the process and speed growth, rather then learning on the fly and probably losing deals along the way

[ADiamond]

For a new ISO who doesn't know whats going on wouldn't it pay to start working with a more established iso rater then going direct.. They will probably make more getting a split on commission with a big ISO then they will getting 100% of a smaller number if they go direct. Not to mention this will help them learn the process and speed growth, rather then learning on the fly and probably losing deals along the way

what type of logic is this? they will receive more with a split than going direct?

sampson partners is an iso shop but i have seen them in statements, same as roc funding and synergy. they fund the deals they like, pass on the garbage - dont know how to underwrite for their life, and when the deal goes bad they file a ucc then try to get it funded to save their deal.

[J.Celifarco]

The logic being that a bigger ISO with an established relationship with a bank that does a good amount of business with that bank is going to get paid a higher commission per deal than a new ISO who is just starting up and has no track record.

[Paperchaser]

aacapital

[channin19]

The logic being that a bigger ISO with an established relationship with a bank that does a good amount of business with that bank is going to get paid a higher commission per deal than a new ISO who is just starting up and has no track record.

And will be able to get more exceptions with a good portfolio/track record.

[J.Celifarco]

And will be able to get more exceptions with a good portfolio/track record.

add to that faster turn around times and a better understanding of underwriting and I think newer ISO stands to make a lot more money if they get a fair deal with a bigger ISO. In many cases probably a lot more money

[Paperchaser]

isos dont pay attention go direct to lender

[MCAVeteran]

What's the intent of the original post? That there are brokers who say they fund the deals when it's really another company or that they farm out your deal to multiple funders? Sounds like you have a bone to pick with some brokers -

[J.Celifarco]

isos dont pay attention go direct to lender

Sounds like you have had a bad experience in the past and if thats the case I am sorry. That said have I said anything that is not true? Bigger ISO's are going to get better pricing, better service, and will be more likely to get an exception. If these are things that will help a smaller ISO get more deals done then why shouldn't they go to a bigger ISO. As long as they are smart, sign a fair deal and make sure that all terms are laid out in an ISO agreement my question is what is the downside?

[ADiamond]

The logic being that a bigger ISO with an established relationship with a bank that does a good amount of business with that bank is going to get paid a higher commission per deal than a new ISO who is just starting up and has no track record.

yeah makes sense, i guess when the ISO with the direct lender relationship is getting paid a decent double digit number, but it doesn't matter because the middle man ISO is paying the originating iso probably 6-8 points and most DL's will pay a new ISO 6-8 anyway depending on factor?

[Paperchaser]

simple. you're in this business to make money, go direct to lender and dont share commission

[J.Celifarco]

so you refuse to believe a company can make more going through an iso then going direct? if that is what you are saying we will have to agree to disagree. it is not the right setup for all companies but there are iso that would make more money going through someone else then if they go direct

[Paperchaser]

i agree that a small % of something is better than a large % of nothing (OBVIOUSLY), but part of being an iso is figuring out who the right lenders are through trial error and going direct

[cardinalequity]

I agree with J.Celifarco.... I started with a huge ISO that has been in the business since the beginning and the things I learned along the way are priceless. And they Definitely get different treatment from direct lenders than smaller shops do. 100%

simple. you're in this business to make money, go direct to lender and dont share commission

[Paperchaser]

ATTENTION ISOs, NEW AND OLD, GO DIRECT TO LENDER

[J.Celifarco]

don't know who screwed you over along the way but I have to say it has you jaded. you refuse to see that there is more then one way to be successful in this business. being closed minded like that doesn't help a business grow. nobody knows everything and when you are just starting you know even less. if I have the opportunity to learn something from someone who knows more then me I would never shut that door

[cardinalequity]

Everyone needs to do what's best for them. If that works for them then great! I do have a question though, I noticed in a previous post you mentioned you asked why Yellowstone is brokering must of their deals out. Do you now consider them an ISO that you wouldn't do business with? In other words if they are brokering out 50% of their deals to other lenders that you could have just gone to yourself will you no longer to biz with them?

How about ISO's that do less business than Yellowstone (which is everyone) that broker and also syndicate heavily in deals? 100k deal they put in 50k and white label the contract. Is that a fake direct lender to you as well? Just curious

ATTENTION ISOs, NEW AND OLD, GO DIRECT TO LENDER

[Paperchaser]

THE HELL IS A "FAKE DIRECT LENDER"? you're either a direct lender or not

[cardinalequity]

You make it seem like anyone who doesn't fund 100% of there own deals is automatically a broker or ISO. There are DIRECT lenders that do both. Not every deal that comes your way do you want to make a part of your portfolio but other lenders are willing. But that doesn't mean they are lying about being a direct lender. I think anyone who funds 40-50% of the deals that come their way can call themselves direct lenders with a clear mind.

THE HELL IS A "FAKE DIRECT LENDER"? you're either a direct lender or not

[MCAFinance]

Exactly. Even if they are a large ISO they still put there own money into the deals as a syndication so they ARE a funder obviously if they use their own money in deals! They have the connects and they know the people. They will get their files looked at quicker and also get more points and leverage when they already have that trust. Also they may get deals done that you wouldn't be able to get done. The larger companies like them because of the fact they syndicate with their OWN money!!

[WhoisKingsley]

I believe if a broker- meaning, an individual who works alone and focuses primarily on getting leads and sales should work with a more established ISO- independent sales office or officer. Why? I would much rather work together and combine knowledge to get something done. I return, you produce more-fund more- and it's easier and a lot less stressful than buying leads, calling, following up, getting stips, placement, getting more stips, closing, funding, following up... If you find a good mentor, stick with them.

Now, for the brokers who act like direct- yes, it is a tactic that most use to make the merchant feel comfortable. MOST People don't like "brokers" because they don't understand what your actually job is and acting like a direct lender and then they find out that your lying doesn't help any when they find out. You don't know how many files I rescue by telling the truth.

There are more brokers than lenders in this... So why lie about it and just embrace it? You actually have the ability to say that you can qualify their financials so they don't have to get confused when they Google "I need a business loan" or when you slam that UCC list with your "scripts". Your goal is to be that merchants "go to" for years to come- not be snatched away because you can't do your job.

Think about it.

[WhoisKingsley]

And P.S. I proudly work with Yellowstone and I like when they work together with the other companies to get stuff done! It makes my life easier.