[John Galt]

And the idea of a "lockout" is to convince the client not to sign anyone else's app to avoid a hard pull.

[jotucker1983]

This has been a great thread full with great discussions .

John Galt has a point in that if the merchant fills out an application with every Tom, Dick and Harry calling him for "financing", before you know it he might have 10 credit inquiries on his report from MCA companies. I do know of Funding companies that once they receive a file and notice 5 other companies just pulled this merchant's credit, they might be less likely to approve said merchant without an explanation.

However, I do not know of any Funding company that provides "real offers" without pulling the merchant's credit. If you are getting offers without a credit pull, those are based solely on the statements provided which could drastically change once the merchant's credit is pulled by the Funding company.

So this would fall back on the merchants individually, as they should carefully select who they are going to work with exclusively, rather than sending their packages to literally "everybody" as the high amount of credit inquiries will affect their credit scoring, and might persuade Funders in not approving them.

[John Galt]

I wasn't trying to convey that the funders won't pull credit. I was conveying the fact that I tell the client not to allow anyone to pull it (no apps for you!).

[SCCNY]

John i see what your getting at that is a good sales tactic letting merchant know their app n statements wont b shopped across the country. It is good to use as levereage, at the end of the day tho you wont get any offers without a credit pull. I know you know that you just have to inform the merchants about it.

[John Galt]

Sorry if I wan't clear, this is a sales thread and we were supposed to be giving out good tips, I thought. After I talk to my client, no one is getting an app.....I believe.

[bdshaw]

John, what's your primary business?
Bob.

[John Galt]

sent you a PM>

[John Galt]

OK did the research and assume "Sean" is Sean Murray the admin and author of both sites. But what I said still stands. It starts as a suspect, before it becomes a prospect. If Sean wants to ban me, I understand. I meant no disrespect, just clarifying.

[Sean Cash]

OK did the research and assume "Sean" is Sean Murray the admin and author of both sites. But what I said still stands. It starts as a suspect, before it becomes a prospect. If Sean wants to ban me, I understand. I meant no disrespect, just clarifying.

You're not going to get banned for saying suspect, lol. I just thought that was funny way to refer to a potential customer.

[John Galt]

Sales 101.....basic as it can be,

[John Galt]

Just realized how pompous that sounds, wasn't trying to cross swords. Just making a point. This site could become a self regulating site for the industry which if it doesn't regulate itself the regulators will.

[Zach]

To expand on John Galt's point, I use a similar tactic, although I tell the client the blunt truth:

Mr. Prospect, now that we have your application on file, I recommend that you allow us some time before you let anyone else to pull your credit. Most of the lenders we work with do not want to see multiple inquiries on your credit report. The commitment I will make to you in exchange is that I will carefully place your file with the appropriate lender, to ensure we get you the best rate and terms. After I secure you a firm approval, you are more than welcome to shop and see what else is out there. Fair enough?

I'm in the library so I'm sure I worded that different than I normally would (I can't say it out loud), but that is the gist of what I reach my reps.

[John Galt]

Zach, I do more than that, but you are the expert in a well known house. I just tell them, they have a whole bunch of inexperienced guys doing credit pulls which will diminish your score. You would be well advised to not allow that to happen. They will all send you apps allowing them to pull your credit, we are all commissioned salespeople, it is your choice as to who you want working for you...some kid in a boiler room or an experienced person that's done it for years.

[Zach]

It's an excellent strategy to help minimize competition. We may use different words but our goal is the same. Seconded.

It can also be valuable to pull credit to identify any competition that may be working against you.

[BigIz]

this x100

If a broker is asking "How's my credit" they might think in the back of their minds they need good credit. 600 to us is gold but to them is horrible credit and if they think they need good credit, they won't bother filling out an app, especially if they were asked "How's your credit?"

An app should never be shotgunned around to everyone to see who bites, especially from the smaller shops and one man operations who don't run credit or do their own duediligence first.

Hey ridX, I am a small shop and want to sign up to run credit. Who would be good that MCA people use. Also, if I run credit and 1 or 2 other Funders do also, how quickly will their score go down?

I signed up with Experian Connect so that the Merchant gets a soft pull but getting the Merchants to do this seems to slow down the process of getting everything in to submit. I just thought that I can pull credit myself and pre-qual the Merchant quicker.

I see plus and minuses on both sides of pulling credit. I have been telling my Merchants the same thing as John, "Do not let anyone do a hard pull, I am going to send you an email from Experian Connect so that you can pull your own credit and score and allow me to view it" BUT sometimes it is 2-3 days later (5 calls) and they still have not pulled credit.

I am thinking now that I just want to go ahead and do a hard pull since I already have the app and all the docs in and I do not want to wait and possibly have someone else take the deal.

[Michael I]

I also ask "do you know your credit score?" If they don't I suggest they go to credit Karma and get it (soft pull). I specifically tell them not to let anyone do a hard pull as this will reduce their score and the miami boiler rooms love to do it and they'll have a hard time getting a good deal. It stops the competition. Then I explain guidelines of alt. and the other vehicles out there.

John I am just curious why on deck cut you off as a broker because anyone working with them will never say that .
Zach as always I agree with the way you say it

[John Galt]

Sorry, Michael I. Ondeck never cut me off. Never been cut off. No idea as to why you would say that, My biz is clean. Have yet to be stalled anywhere.

[John Galt]

Most importantly if a funder cut me off it would be irrelevant since there are so many, though if someone I dealt with alot who helped it would be different. We are all in this together, whether mafia loans or conventional. as long as we all get paid off who cares? Anyway I have no idea why you would spout bs but not important.....my spot and fee with ondeck are still current.

[John Galt]

Just funded a deal with ondeck, unsure why you would post BS. Especially as a "senior member', Do you work for Leverage who is moving to 125 st Miami after the eviction?

[Michael I]

And how exactly did you do that ? If your telling your clients you won't pull their credit .

[John Galt]

maybe you need to read the posts better mikey.

[anydealfunded]

John,

I feel bad for any funder that is signed up with you. The soft pull bull**** is an absolute joke. Why would I want anything to do with your headache business practices? As a funder when you send me a deal I expect you have vetted the file and are sending it just me. In reality you are ****ting the file around to a bunch of different lenders without a credit pull which drastically increases my chances of getting stacked on. You're better off sending it to one funder to do a credit pull that you have a relationship with that you KNOW will make an offer. Maybe 2 at most. Just my 2 cents....

[len@accfunding.com]

You guys are ruining this great thread with a BS pissing match. Can you take it somewhere else? This is suppose to be about sales tips not your BS.

[KTK]

^ agreed

[SupremeClientele]

You guys are ruining this great thread with a BS pissing match. Can you take it somewhere else? This is suppose to be about sales tips not your BS.

I agree. Stop derailing the thread with petty bull****. Everyone is not going to agree on how to do things in the exact same way, but there are some great universal truths that were shared in the beginning. Now we have wasted 4 - 5 pages on bull**** because people can't agree to disagree.