[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.