[Jstarr]

Just an FYI - Im all for co-brokering deals, especially if someone has a solution that may suit the client better than a traditional MCA or when an MCA wont work - I Do it all the time because I'm not greedy, i believe in team work and spreading the wealth - but don't try to circumvent and go direct with the client and cut out the broker who sent you the deal....

I could use this form to trash you and im sure it would effect your business quite a bit, but Its not my character to call someone out publicly or cause harm to anyone, but take warning - it wont be tolerated and im sure eventually someone will start a thread calling out scumbag brokers such as your self and you'll be weeded out....

[MCNetwork]

You just have to find the right people to work with. There are a lot of shady characters in this industry.

[Jstarr]

***** Just a quick sidebar - Our sister company has a dedicated team that works on SEO and Reputation management for our clients - so trust me when i tell you, if you keep it up you'll be spending money with me to clear your name so you could find a new career....

you've been warned.

[Jstarr]

...

[Jstarr]

I agree - eventually i will call them out so we cal thin the herd...

You just have to find the right people to work with. There are a lot of shady characters in this industry.

[jotucker1983]

You guys might just want to stop co-brokering deals. There might be a significant portion of brokers in our industry, but every direct lender can be identified in some format through a directory. Just partner with the lenders yourself, create your own network and submit your own deals.

Have lenders for your A paper, lenders for your B + C paper, and then lenders for your D + E paper.

[michaelh]

Well its all in the Contracts- Even if you Co Broker a deal you should have a written broker agreement and a written NCND agreement.

[jotucker1983]

Making sure you partner with the right lenders and not co-brokering deals is very important. Yes, you have tools at your disposal such as the legal system and trying to destroy someone's reputation online, but neither of which are really going to be that efficient unless you are talking about something "major" such as outright fraud involving high dollar amounts and multiple victims.

- Online Reputation: Companies really can care less about this and even the BBB (which you pay a $500 a year fee to) can really manipulate a company's reputation as long as they are willing to pay the fee and do somewhat of a half-hearted response to the negative review. You have some of the largest Merchant Processing ISOs that are literally all over the Rip Off Reports and also another site www.complaintsboard.com, but that doesn't do anything to stop their growth. For example, United Bankcard (now called HarborTouch) is one of the largest Merchant Processing ISOs in the country and they are literally everywhere in terms of complaints, rip off reports, and there's even websites dedicated solely to complaints about that company. The organizations getting these negative reviews will just say, "We serve XYZ thousand of clients and when you are as large as us, you are bound to have unhappy customers."

- Legal System: You can sue the broker for the $2,000 or so they didn't pay you in small claims court, but try collecting on that.

Literally, the best way to protect your office, residuals, renewals, and new deal compensation is to make sure you partner right in the first place.

[WhoisKingsley]

This was awesome and I commend Jerry for reminding everyone that people aren't all who they seem to be. Make sure the agreements measure up to an secondary ISO agreement- schedule As are clearly stated if you are splitting commissions and you are the third party.

Those who are sub-brokering, here is a warning for you. Sometimes sub-brokers are needed to shop and fund "dirty" files. You may be a brokers "cleaning" ISO. Meaning - you get the file done and if it defaults, it's all on you. The broker you sub-brokered for, can vanish or simply tell you scr*w off.

It all has to do with contracts and even if you are brokering, your agreements should be checked out as well. Don't just take some others conpanies agreement and slap your name on it.

Some Agreements have clauses that show "taking" your file after so many days is legal. Commission claw backs can be 90 days, no renewal reminders etc.

You have to understand what a "broker" is in this space and understand that it is A LOT different than brokering in another industry.

And nothing is "fair" in this industry. There is no president/ruler of the MCA world that can help you with your commission debacles if you have an agreement that you didn't read correctly. If it was an act that can be legally faught- make sure you have a good case and it's over X amount of thousands of dollars or it won't be worth it.

[WhoisKingsley]

I am not saying jerry is using brokers to shop bad files btw- he is an awesome guy and does great business.

If your ever down south visit localdines.com before you go out to eat!!!

[jotucker1983]

I love the emphasis on the Contract, but also guys keep in mind that sometimes a Lender can revise their Broker Guidelines and Provisions at anytime.

I started heavily marketing and selling MCA/ACH Loans in very late 2009, and the Agreement I signed back then is totally different than the Agreement/Guidelines that I have with most of my lenders today.

Get everything in writing and research your lender/partner heavily before contracting with them. Talk to other brokers and ask them about their experience with said lender/partner in terms of paying on new deals, renewals and residuals. Get a "feel" for them.

In a nutshell, the only true thing protecting your compensation is a very good relationship with an honest, credible and ethical lender.

Under no circumstances would I ever co-broker a deal. There's just no reason to unless you are a newbie and getting trained by said broker.

[Avell Group Consultants]

Sometime you don't even know you are co-brokering until after the fact. I did a deal with a company that calls themselves a direct Lender on DF. They sent the deal to another company that claims to be a direct Lender and they sent the deal to a third company that actually funded it.

That being said, I agree that co-brokering in the MCA space is unnecessary in most cases. I rarely do cash advances anymore. But when you go into other spaces, co-brokering is a fact of life. I deal with a lot of projects that require debt and equity of multi millions and it is all about the right connections. Even companies that have hundreds of millions in assets function as brokers. Their position gives them access to those who can fund these types of deals. So just saying that you want to deal only with direct lenders can kill your deals. You need to know the space you are dealing with. You can make a lot of money co- brokering, you just need to pick your partners carefully. And to those of you in the MCA space, you need patience once you move outside your realm. Many of these deals can take months to close and the percentages on commissions are nowhere near what you are used to with MCAs. But then again, when you are doing multi million dollar deals they don't have to be. Commissions may have to be split between a half a dozen people and they are still worth it.

[WhoisKingsley]

Sometime you don't even know you are co-brokering until after the fact. I did a deal with a company that calls themselves a direct Lender on DF. They sent the deal to another company that claims to be a direct Lender and they sent the deal to a third company that actually funded it.

That being said, I agree that co-brokering in the MCA space is unnecessary in most cases. I rarely do cash advances anymore. But when you go into other spaces, co-brokering is a fact of life. I deal with a lot of projects that require debt and equity of multi millions and it is all about the right connections. Even companies that have hundreds of millions in assets function as brokers. Their position gives them access to those who can fund these types of deals. So just saying that you want to deal only with direct lenders can kill your deals. You need to know the space you are dealing with. You can make a lot of money co- brokering, you just need to pick your partners carefully. And to those of you in the MCA space, you need patience once you move outside your realm. Many of these deals can take months to close and the percentages on commissions are nowhere near what you are used to with MCAs. But then again, when you are doing multi million dollar deals they don't have to be. Commissions may have to be split between a half a dozen people and they are still worth it.

Avell- If I am not mistaken we both got caught in a co-brokering scandal not too long ago when a "broker" reached out to you about some files to find homes for. One of them were mine from a week prior that was "back-door-ed" and sent out to unsuspecting brokers who they prey on to get files done for them. It's pretty disgusting and thus why I stopped Co-brokering files. Those who did it for the right causes like helping those who don't have an office or admin get caught in the middle of some tough battles that aren't worth fighting- no matter the commission amount.

deBanked posted about co-brokering... read and respond and keep the thread going.

http://debanked.com/2015/05/the-co-b...-cash-advance/