[J.Celifarco]

How many times, on average does everyone think a Merchant's credit get pulled when a Broker submits him/her for funding?

I have been thinking about it lately and am starting to feel like we should pull credit 1 time ourselves before sending it out and that's it. If the Lender wants to pull a credit report one more time once a deal has been offered and accepted that is fine. The reason is I have had a couple of declines the last few weeks due to them missing the minimum score by 4-10 points. We try to send most Merchants to 5 Lenders or less and stick to whoever would be the "best fit" but let's face it, lots of Merchants are going to make the rounds.

Example: Restaurant/Retail shop depositing $40,000-$50,000/month 600 score, minimal NSF, some minor blemishes, but pretty decent overall; just about anyone will fund them....you're going to want to send them out to a few places and see who puts the best offer out.....and you have to assume nowadays they either are shopping or will be so you want to play defense....who wants to lose a deal because you inadvertently dropped someone's FICO score.

My questions is: Do a lot of brokers do this already? Do most Lenders accept that type of arrangement? If they do, than great, it's a good selling point and my clients will appreciate it. I''m definitely leaning towards doing that from now on.

My question to you is why submit to 5 banks.. You can't have that many banks that do different things.. Submit to 2 get some info on the file then decide where to go with the file once you have more info.. It is easier to get a file funded if you bring it to a bank and submit with any issues that the file may have. By submitting to 2 banks it allows you to minimize credit pulls and if the file is good you are able to get it funded. If the file is not good you now have valuable information you can use to get the file funded at the next bank you submit it to. By submitting to so many banks at the same time I think you hurt yourself and the merchant more then help. On top of that you are making the banks underwrite a file that they only have a 1 in 5 chance of funding. If you continue to do that the banks wont want to work with you either

[cardinalequity]

J.Celifarco is dead on with this...great advice. If you or your client are uncertain about the clients score then send it to an A lender if industry permits. Lenders like Quick Bridge and Ondeck are great about telling you exactly why it's a no go. QuickBridge goes as far as to itemize and even tell you client has to many collections. This info now gives us the opportunity to know exactly where to go with the file and to also prepare the client on a much higher factor rate.

[JSL23]

My question to you is why submit to 5 banks.. You can't have that many banks that do different things.. Submit to 2 get some info on the file then decide where to go with the file once you have more info.. It is easier to get a file funded if you bring it to a bank and submit with any issues that the file may have. By submitting to 2 banks it allows you to minimize credit pulls and if the file is good you are able to get it funded. If the file is not good you now have valuable information you can use to get the file funded at the next bank you submit it to. By submitting to so many banks at the same time I think you hurt yourself and the merchant more then help. On top of that you are making the banks underwrite a file that they only have a 1 in 5 chance of funding. If you continue to do that the banks wont want to work with you either

UNDER 5 banks.....usually 2-3. Sometimes it can go up to 5, if the Merchant gets declined or we get a weak offer but usually it is 2-3 on the initial submission. I would honestly like to send it to 6-8 Lenders; let you guys compete for the business but I do not want to shotgun anything in the best interests of the client. That is why I would like to do the credit pull ourselves, so it is one-time and on time ONLY until an offer is accepted.