[mfs01]

I spoke to one of my ISOs yesterday and he told me that over the past few months he had several deals submitted with a few particular funding companies. These deals were in "underwriting review" for a month or so. Finally the "funding companies" declined the deals. This ISO later found out that the deals were funded by another larger funding company.

Has anyone else run into this issue?

Are all funding companies actually a funding company?

Is all of your work done just so that another broker who is posing as a funding company can take YOUR commissions?

isosupport@mfsglobal.com

[MCNetwork]

How can it take a month to underwrite a deal?? It shouldn't take more than 48 hours max.

[Chambo]

Most funding companies have their own in house sales staff as well as accept ISO bbusiness

[mfs01]

Chambo,

Having their own sales staff is fine, but stealing deals????

That's just very bad business practice.

[Chambo]

Chambo,

Having their own sales staff is fine, but stealing deals????

That's just very bad business practice.

No offense to you or your ISO, but....

You are a small company, tight on cash as it is. What are you going to do? Sue them? With what capital? you only submit 10 deals or less a month, so if you threaten to leave, so what?

Now if you are FUNDING 20-25 deals a month with them or doing $1 mill a month as an ISO, then you are on a different level

[HeatherF]

No offense to you or your ISO, but....

You are a small company, tight on cash as it is. What are you going to do? Sue them? With what capital? you only submit 10 deals or less a month, so if you threaten to leave, so what?

Now if you are FUNDING 20-25 deals a month with them or doing $1 mill a month as an ISO, then you are on a different level

That is a pretty short sided view. All ISO/agents count no matter their submission level or their size. They all add up to the greater picture.

Direct Funders are popping up all over the place now and reputation is going to be coming into play a whole lot more as ISO's have more resources to go to. I know I sure would not want someone posting on a forum about how we shopped out his deal or stole his commission from him. His one post is seen by many and then those many talk to a lot and soon the whole industry knows. The market we cater to may be big but we operate in a small world and word gets around.

[staten]

That is a pretty short sided view. All ISO/agents count no matter their submission level or their size. They all add up to the greater picture.

Direct Funders are popping up all over the place now and reputation is going to be coming into play a whole lot more as ISO's have more resources to go to. I know I sure would not want someone posting on a forum about how we shopped out his deal or stole his commission from him. His one post is seen by many and then those many talk to a lot and soon the whole industry knows. The market we cater to may be big but we operate in a small world and word gets around.

Chambo works for Yellowstone. everyone knows they are the bootm feeders. is he saying he will screw over isos unless they have the money to sue?

[mfs01]

MCNetwork,

I agree, MFS Global, Inc gives approvals back the SAME DAY!

[MCAVeteran]

some funding companies utilize other funding companies for their loans or advances on syndication or 100% broker business. as long as you get paid, understand this upfront, it shouldnt be a shock.

[mfs01]

I understand that some funding companies may not have the capital to fund all deals that are submitted and may have to look elsewhere for the funds, but what my ISO was referring to was the fact that these funding companies were actually stealing his deals and keeping the commissions to themselves.

[Chambo]

I understand that some funding companies may not have the capital to fund all deals that are submitted and may have to look elsewhere for the funds, but what my ISO was referring to was the fact that these funding companies were actually stealing his deals and keeping the commissions to themselves.

I understood and answered accordingly.

[MCAVeteran]

Mfs01- if you have proof of this than you should confront them with breach of contract and decide how much revenue loss occurred and if you need to litigate for loss of revenue and misrepresentation- you could always contact the actual funder who funded the deals and explain what happened as well. If its a one off deal lawyering up won't be cost beneficial more than likely -

[mfs01]

MCAVeteran - This didn't happen to me. I work for a funding company, MFS Global, Inc. I was just relaying something I heard from one of my ISOs and wanted to know if anyone else had experienced this.

Thank you. I will relay that to my ISO.

[MCAVeteran]

sean bash- well put. most do not read the iso agreements, and, just buy into what the business development manager or account manager tells them. what the iso or agent needs to know is, its the contract that ultimately tells the story when things go sour. sure it costs money to have an attorney read the fine print, but, if you plan on spending alot of your marketing dollars acquiring business and trying to build a portfolio for long term revenue, wouldn't a few hours today save you thousands of dollars of headaches tomorrow? Dont ever sign something you dont understand or read. Its that simple. Personnel comes and goes, and, you cant go on what somebody told you on the phone. read the schedule A, renewals, who owns the account policy, assignment clauses, etc, etc. maybe your red line request will get shot down, and, if you cant live with that, move on to the next company...its that simple. the companys who create these contracts spent their money and attorneys to protect them, shouldnt you do the same? If both parties meet in the middle, the business relationship will be much healthier long term.

[Chambo]

Thank you Sean and Ed

[MCNetwork]

Serious accusations there. I never had a problem with Advance Me and I don't work with Yellowstone so I wouldn't know about those kinds of shenanigans...

[CashAdvanced]

Sean is saying that this is the way the business has been for a while and that is what you are failing to understand mfs01. Sometimes deals go thru multiple brokers before they finally make it to the direct funder who gets the deal funded. This is not new news. Why do you care who is funding your deal if it's getting funded for the commission you are promised. The fact of the matter is Yellowstone and other companies may broker your deal out sometimes but they get the deal FUNDED which you could not do without them in most cases and you get the commission that u were told you were going to get. Your coming off like your a direct funder but that doesn't seem to be the case if you are brokering ISOs deals to more companies..... There's absolutely nothing wrong with going thru an ISO to get your deal done if you can't do it yourself.

[isaacdstern]

Bottom line boys and girls is we fund deals no one else does, in some cases we do broker the deals out....last month we funded 438 deals in house and brokered out another 400 or so...we fund some of the most high risk files out there and if we can't fund it ourselves we find a funding company that will!!!

[CO1]

you tell them isaac!

[Finance1]

I think there needs to be proof before accusations. One thing most merchants aren't when shopping is loyal. I rarely see an application come in where there hasn't been another cash company pull on credit. I would say that taking too long or not offering the right deal will result in the merchant getting funded by someone else (that the merchant applied with).

Not saying is doesn't happen sometimes because I'm sure it does but it's probably more rare than people make it out to be.

[mfs01]

Finance1 - That is true. "Buyers are liars" so who knows maybe it was the merchant who decided to submit to a different company after all.

I was trying to find out who else has had an experience like this and everyone's thoughts on it. It looks like a couple of people have explicitly named a couple of companies that do exactly that...

Al
isosupport@mfsglobal.com