[bostriba]

When I (broker) bring my deal to another broker then what is co-brokers obligation in compensating me in future deals with that same merchant?

It is unclear to me if I give up my rights to any commission oriented compensation should co-broker deliver another merchant advance to the same merchant.

Please advise!

[MCNetwork]

Unless you have a contractual agreement between the both of you, everything is a gray area. You need to protect yourself by putting it in writing!

[Scott Williams]

It all depends on what you set up with the co broker. Maybe they pay you a higher commission on the first advance but nothing on renewals or maybe its the same % on new deals and renewals. Its up to you to fight for the best deal but like MCNetwork said......get it in writing.

[SupremeCapitalGroupinc]

Yes make sure you out it in writing and also keep track of your files and stay in constant contact with merchants and you should be fine. Also make sure you deal with reputable brokers. You can always ask about a broker on this forum.

[J.Celifarco]

Anytime you are funding a deal with a company be it another broker or a direct lender you MUST have a ISO agreement in place dictating the terms of the relationship. Do not send deals to a company until the agreement is in place and all terms agreed upon. There are zero exceptions to this rule unless you want to get screwed over

[jotucker1983]

When I (broker) bring my deal to another broker then what is co-brokers obligation in compensating me in future deals with that same merchant?

It is unclear to me if I give up my rights to any commission oriented compensation should co-broker deliver another merchant advance to the same merchant.

Please advise!

1.) As everybody else said, make sure to have a business contract in place at all times that will list out said compensation. It might be a 50/50 split on the new deal and a 30/70 split on renewals up until 12 months or something, just as an example.

2.) Try to avoid contracting with another broker, I do understand that a lot of direct lenders are cutting down on bringing on "anybody with a pulse" (which I think is good), but there are still enough lenders out there that will contract with you directly if you seek them out.

3.) While getting your contract in place is important, as everybody has pointed out and I agree with, do keep in mind that larger brokers or lenders might be aware of your actual resources. This means that even if you have a contract in place, and they do something shady, they might have no quarrels about it as to them you might just be a small fish with no real resources to fight legally. Or sometimes, the cost to fight something legally is more than the actual amount of compensation if you win. You do have your voice to come on Public Forums like this one and reveal their shady tactics, but that truly only goes so far. If Public Websites truly were "that scary" then Rip Off Report would have caused many large ISOs nervous breakdowns by now. Just about every major Bankcard ISO is on the Rip Off Report, and that doesn't stop them from continuing to operate/grow.

4.) Your real best defense against anything shady is to have a reputable partner to begin with. Spend some time interviewing them, look up what others are saying about them online (partners and merchants), and also try to understand their criteria to make sure they fit within your business plan.

Your business partner is a major investment, so just as you would research any other type of major investment, make sure you do all of your research on this one.

[Chambo]

When I (broker) bring my deal to another broker then what is co-brokers obligation in compensating me in future deals with that same merchant?

It is unclear to me if I give up my rights to any commission oriented compensation should co-broker deliver another merchant advance to the same merchant.

Please advise!

Their obligation to you entirely depends on the agreement you initially set up with them. end of story

[WhoisKingsley]

It is unclear to me if I give up my rights to any commission oriented compensation should co-broker deliver another merchant advance to the same merchant. <= what does this mean?

Are you trying to say that you DECLINED an offer that the sub-brokering company that you work with gave you because you didn't accept the commission that was going to be paid to you?

This is seems to be a common thing that is happening- so you base everything you do on your commission and not satisfying the merchant with an acceptable offer that they need? Why don't you just stop sub-brokering and create relationships... in the months that you've been doing MCAs you could have made 100 by now and did this all yourself.

[cardinalequity]

You shouldn't send a broker a deal without an ISO agreement clearly stating upfront what you'll get paid. In my personal opinion I believe 50/50 split is fair and it's what I'd offer.

On a side note, I'd also add it's your job to keep track of your clients and have an idea of when renewals are due. Keeping rapport with you merchants and staying in front of them would help hedge against someone side stepping you at the time of the renewal.

When I (broker) bring my deal to another broker then what is co-brokers obligation in compensating me in future deals with that same merchant?

It is unclear to me if I give up my rights to any commission oriented compensation should co-broker deliver another merchant advance to the same merchant.

Please advise!