[Achfund]

how often are funders catching this?
example - merchants lease says 3,200 a month and oct nov dec you see it coming out as a check and then nothing jan feb...merchant tells you all good i paid cash...call LL and he says all good and then a week later landlord calls you back after you did verification that really he wasnt up to date, the merchant just told him to say he was so he could get an advance and pay him which the merchant didnt end up doing. and then there are those who dont check landlord at all.

[TheChoice]

My experience, if it's a deal killer, the land lord never has a second shot to rebut what he stated in the first interview.

[Sean Cash]

how often are funders catching this?
example - merchants lease says 3,200 a month and oct nov dec you see it coming out as a check and then nothing jan feb...merchant tells you all good i paid cash...call LL and he says all good and then a week later landlord calls you back after you did verification that really he wasnt up to date, the merchant just told him to say he was so he could get an advance and pay him which the merchant didnt end up doing. and then there are those who dont check landlord at all.

I mean what can you really do? You're asking for a reference... Your best bet is to turn up the heat on the landlord by telling them the call is being recorded and/or have them sign a form to which they swear their tenant is current. Some people think twice when they realize they are going on permanent record. I don't think I've ever seen a case in this industry where the landlord got sued for a false reference but insinuating it could happen might compel them to be honest.

[Achfund]

Valid point.

[bizzcash.com]

If the merchant had made two $3,200 rent payments then should have written receipt for those payments; especially in lieu of returned checks.

"Never trust anything except what's on the written piece of signed paper," in this case a rent receipt.

This is a merchant lying and trying to buy money under false pretenses, and possibly unfairly putting you at risk with your principals. "Buyers are Liars."

Had the merchant been upfront and honest with you, you could possibly have fudged and twisted and worked the numbers and your relationships to come up with some "win win" situation, maybe even wrapping the Jan and Feb $6,400 rent payment up into the cash advance itself. That's "win win."

But there's no "win win" in "lie lie."

That's a long walk up the carpet, or, God forbid, a long, long look in the mirror if it's your own money, where you have to retort, "Hey, but the guy said . . ."

In any event; rely on your marketing. For every 50 of these flakes that come through the door, your effective marketing will bring you . . . 2, 3. Ha!

[bizloanbroker]

One of the most important underwriting items is the landlord verification.

Reps always coach merchants, you never know if its the merchants cousin doing the landlord verification or if its the actual landlord

My favorite id Ondeck, they don't actually feel you need a landlord verification, lol