[CannonCap]

Quick question maybe you folks can give some insight. When submitting deals to lenders, and clients take cash/check as well as have a merchant account with a substantial amount going through the merchant account, why is it that some lenders only send an approval out with an ach program and never send an approval with %holdback unless we specifically ask? Why not send both options?

[MCNetwork]

The ISO rep at the lender is probably pushing the ACH options because it's much faster to fund and he wants to get his commissions quicker. Credit card deals usually take a few days longer to fund and if a lockbox is involved it takes even longer.

[GRP Funding]

They might prefer writing deals on their loan platform because of a personal guaranty? We would send offers for both if the merchant qualifies for both.

[Chambo]

because several of these newer and smaller funding companies do not have split capabilities.

[WhoisKingsley]

Do you specify? Chambo is right, some lenders don't have split capabilities and certain lenders require that you specify or send to a certain department.

Always check the packages that come with your agreement. If the company can't supply you with spex/qualifications, submission guidelines, and contacts- odds are, they aren't a great funder

[CannonCap]

Appreciate the responses..

[JSL23]

I wish more did hybrids....so you can offer the benefits of payback "moving at the speed of their business"without the hassle of switching processors... A lot of Lenders say they do it, but I've only gotten a handful of deals like that...

[J.Celifarco]

the other reason I think is less risk for the bank. on an ach program you have a fixed time frame and don't have to worry about the account running slow because processing dropped

[WhoisKingsley]

YESSSS! I feel like the approvals would be higher and make more sense.

[MCAVeteran]

If the bank statements have a lot of negative days the ach option isn't there. If they do not have a split mca option they will only be able to approve a perc of deals. Similiar to a comparison to on deck and can capital- CAN carries both mca and business loans while ODC only reviews for loans. That being said, loans/ach repayment products are more in demand and sold than mcas in today's current environment