[jotucker1983]

I understand that lenders need to have a full picture of who refers them deals. However, will someone help me understand why a lender would require the authority to pull the ISO owner's personal CREDIT Report? Background report I understand, but credit report?

The lender insists that they don't pull credit, but when I crossed the authority out on the application it was rejected.

No big deal as we were just trying to add an additional C-D funder to our portfolio.

Appreciate the education, thanks.

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".

[factorfinders]

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".

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?

[jotucker1983]

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?

It could be that they do in fact use credit reports as apart of their background checks, and whomever you were speaking with (maybe an ISO/Broker Support Staff Member) provided you inaccurate information?

From my experience, when an Employer says they are going to do a background check it will include not just criminal history, but also your credit report, driving record, any professional licenses you hold, tax liens you might have, the status of your US citizenship, the whole nine yards.

You are considered 1099 when you sign up with a Lender, so they might or might not include a credit report within their background checks. But I worked with some Lenders that pulled my credit to authorize me as a Broker even way back in 2010.

[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

[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.

[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?

[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?