[AndyYSCISOdept]

There have been a lot of great points made on this thread, from KTK's point to JoTuck, everyone has made some really great points. But at the end of the day (in my opinion) it really comes down to two things. 1. There are enough options out there that you don't need to have your credit pulled to work with someone who gives the best approvals. 2. It is a personal comfort thing, as much as they want check me out as an ISO it's none of their business if I am behind on my student loans etc bc that doesn't make me a better or worse ISO/broker/rep.
My reputation as someone who follows ethical business practices will carry the day and make me successful in this space, regardless of if I went into default on a CC while I was at university.

[KTK]

Well said Andy

[Lexgroup]

I think this should be mandatory for all lenders. Do you really want the guy with 10 counts of fraud and financial crimes sending you deals?

Hell no LOL. Here's an interesting article - http://www.bloomberg.com/bw/articles...erest-loans#p1 - some familiar names here

[AndyYSCISOdept]

I've read all of the articles bashing this or that alternative lender and it's "unsavory" characters. But in my opinion, you do enough digging in any industry you can pull up all the same stories about employees that have been hired. This article was lazy journalism to fill the required word count and make a check. Nothing more nothing less.

[FUNd]

I think the idea behind a personal CBR is to seek a pattern of financial fitness. Obviously, if someone has some issues here and there, that's life, but a CBR can also expose other issues, like judgments from other lenders for example. I remember a scenario in which I was doing a corp-only equipment lease for a company, and at the last stage, it was necessary to pull the principal's credit, just to verify there were no red flags. Turned out he had a half million dollar judgment from another leasing company he had defaulted on 3 years ago under a different business entity, so it did not appear on the D&B or Lexis Nexis. Same goes here. Just because an ISO has had some credit issues in the past shouldn't preclude, but if they are a garden variety deadbeat, they shouldn't be advising business owners on financial matters.

[Chambo]

Fingerprints are pretty standard in the finance biz. My girlfriend worked as a teller at Bank of America and had to have them done. This space is the most lenient of any I know as far as background investigations, it needs to change, and no I don't mean we need the feds helping us.

Every Stock Broker has to have it done. Also has to list ALL employment for last ten years. Cannot have more than a 2 month void in that time frame either (so your prison time for two years will be a problem) Nothing new here & a welcome change.

[factorfinders]

Major difference, a stock broker would (hopefully) only be working for one broker = one credit pull. An ISO might want to have funding relationships with multiple lenders focusing on different credit quality = multiple credit pulls. Bottom line for my firm, as has been suggested above, if you require personal credit pull we will refer our prospects elsewhere. Plenty of funders still don't require personal credit. Ironically, the lender that insists on the personal credit authority in their application (although they insist they won't pull it?) aggressively markets to ISOs on this site. I can't get past the integrity issue -- why do you require the authority if you won't pull my credit?

[Michael I]

someone who doesn't pay his bills you will never get the clawback if the deals goes bad . not sure if that even plays a role . the bigger thing is the judgment of character .
they should let you be able to pull your own credit so it doesn't look like you are looking for money .
also you can block your credit from being pulled and just sign as they are saying they wont pull it

[JoeLepkoski]

how bout the lenders who run credit without an app...one guy today dealt with one iso..credit pulled 17 times in a week

Golf, I dont think they are running credit without an app, it think its the fact that that one ISO sent the app to 17 lenders, or sent it to a few "direct" lenders that are actually just ISO shops themselves sending it out.

[AndyYSCISOdept]

Golf, I dont think they are running credit without an app, it think its the fact that that one ISO sent the app to 17 lenders, or sent it to a few "direct" lenders that are actually just ISO shops themselves sending it out.

That's a whole other issue, when an application changes hands from broker to broker to ISO to Funder and each time the deals been sent out across the industry with the credit being pulled numerous times too.

[AndyYSCISOdept]

someone who doesn't pay his bills you will never get the clawback if the deals goes bad . not sure if that even plays a role . the bigger thing is the judgment of character .
they should let you be able to pull your own credit so it doesn't look like you are looking for money .
also you can block your credit from being pulled and just sign as they are saying they wont pull it

I have my credit blocked for reasons exactly like this. Heard the pitch of, "We just need you to sign this authorization, we don't actually pull your credit." Totally BOGUS

[spellman]

please sir you do 1099s w-2s checks on workers there in new york?

[Chambo]

Credit reports are apart of the background checks these days. Every Employer (for the most part) is pulling your credit after they make the decision to work with you as a direct hire or as a Partner. If one has bad credit, it can surely stop an Employer from hiring you as a direct hire, not sure if it will stop you from becoming a Partner or not, but it "could".

Isn't that now illegal in NY?

[mcaguru]

Equipment Leasing Groups have always required a background on the ISO/Vendors, Many MCA Shops are now seeking backgrounds.

Cresthill Capital does NOT.

[bdshaw]

Factor finder, are you out of Ohio.
You raise an excellent point about the integrity of the lender. The lender seems to be misrepresenting their position about pulling the reports. I would be wary of dealing with them.
There's an old adage in the collection arena, a debtor is a debtor is a debtor etc.
This may be a liar is a liar is a liar etc.
Bob

[happysales]

I believe that is soon to be against the law in NY State.

It is already against the law to check an employee or potential employees credit report in NY. I can't see how they can regulate checking a credit report to determine if one business wants to do business with another one.

[OC Funder]

Understand that many employers pull credit when hiring, but this is a very different situation as I am the Managing Member of an LLC. The transaction is between two business entities. As a point of clarification, the business entity has employees, an office lease and all the trappings of a legitimate business. My biggest complaint was we were assured that the funder doesn't pull credit, but when I crossed out the authorization the agreement was rejected. Which is it?

Would you accept the same line of reasoning from a restaurant seeking a cash advance? If anything, a restaurant with 100k of kitchen equipment has a far better argument than your class c office space with a couple IP phones (and even if your shop is more sophisticated than that, the next guy's won't be).

Sometimes you can get the requirement waived if you're a credible shop with an established reputation. If not, some people may be weary of doing business with you, especially in an industry known for fraud and sleeze

[jotucker1983]

I fully support the pulling of the credit reports. We don't want to turn into many in the "credit repair" industry who sell services on how to fix your credit, but their credit is run of the mill.

We are in the business of selling lending and credit services, why would we want to not focus on fixing our credit profiles? Just makes no sense to me, but then again a lot of things don't make sense to me with our industry at times, especially seeing as though people can be bought in without even a background/criminal record check being ran, and these people are out here collecting SSNs, DOBs, Tax Returns and Financials.

Lord knows how many guys are out there on the phones right now, collecting SSNs, Bank Accounts and Financials of merchants who are convicted felons. That is scary as hell to me.

[FUNd]

Would you accept the same line of reasoning from a restaurant seeking a cash advance? If anything, a restaurant with 100k of kitchen equipment has a far better argument than your class c office space with a couple IP phones (and even if your shop is more sophisticated than that, the next guy's won't be).

Sometimes you can get the requirement waived if you're a credible shop with an established reputation. If not, some people may be weary of doing business with you, especially in an industry known for fraud and sleeze

I've seen some real sleazeballs operating out of 'class a' office space. Not sure VOIP phones aren't the absolute standard now either.

Not sure I follow your argument.

[fundgorilla]

"My reputation as someone who follows ethical business practices will carry the day and make me successful in this space, regardless of if I went into default on a CC while I was at university."

Perhaps at that university you studied the Zulus Vs the British?

https://en.wikipedia.org/wiki/Battle_of_Isandlwana

[Chambo]

There have been a lot of great points made on this thread, from KTK's point to JoTuck, everyone has made some really great points. But at the end of the day (in my opinion) it really comes down to two things. 1. There are enough options out there that you don't need to have your credit pulled to work with someone who gives the best approvals. 2. It is a personal comfort thing, as much as they want check me out as an ISO it's none of their business if I am behind on my student loans etc bc that doesn't make me a better or worse ISO/broker/rep.
My reputation as someone who follows ethical business practices will carry the day and make me successful in this space, regardless of if I went into default on a CC while I was at university.

if you ARE behind on your student debt (though I would be surprised to hear that form YOU andy) you might make a GREAT ISO,....because you are hungry and in need of cash

If you are living off of your trust fund or bahmitvah money, how aggressive are you really going to be?

[OC Funder]

I've seen some real sleazeballs operating out of 'class a' office space. Not sure VOIP phones aren't the absolute standard now either.

Not sure I follow your argument.

I could have phrased my argument better, I didn't mean to suggest that the quality of your office space is relevant... The point i was trying to make is that it's very easy to throw up an ISO and tear it down. OP felt that his credit was irrelevent because he had an LLC with employees... if you don't accept that logic from your merchants, why should funders accept it from you?