[Andy@broadwayadvance]

The clients are always pissed off when they get pre-approval and asked for additional files.

[JoeLepkoski]

They would be more pissed off if they signed contracts, sent in stips, etc and then got declined because of something that was requested earlier in the process. The offer is a PRE approval for a reason.

[AndyYSCISOdept]

Andy, if you'd like to discuss further I am more than happy to offer you some advice and pointers. Been doing this a long time and I can give you a pretty good idea of how to avoid situations that can prevent funding. Give me a call 347.464.0785

[Chambo]

New reps need to understand....just because you get offers form a fund, the deal IS NOT APPROVED YET. that's no different form those credit card offers you get in the mail "pre-approved"

THE REAL UNDERWRITING STARTS AFTER the contracts come back

[AndyYSCISOdept]

I think they're a little different that the Credit Card offers in the mail but I get what you're saying. I don't agree with the underwriters pumping out offers that have no chance of standing once the contracts come back which is one of the reason I have insisted upon the guys who do my underwriting here to really scrub that file down so that as long as the login / bank ver is half way decent then there shouldn't be any reason the deal doesn't fund (pending the usual culprits)

[FUNd]

Funders want the contracts signed first because of the nature and cost of the funds. It's natural for inexperienced or just generally poor salespeople to say anything to a client (promising low rates, long terms, unrealistic advance amounts), just to get the application in and get an 'approval'. I can't tell you how many reps I've seen do the touchdown dance and run around the office telling colleagues what a great salesperson they are because they got a client approved. What they don't tell everyone - is the deal hasn't even been sold yet.

UW is expensive and time consuming, and lenders know that most people are not agreeable to the rates and terms. This is why they want the client to jump that important hurdle FIRST, and make sure the deal is SOLD, before they dedicate these resources.

Set expectations with your merchant - about the process - and SELL THE DEAL. You'll never have another complaint from a merchant about additional information you need. Be a salesman and a consultant, not an order taker.

[J.Celifarco]

One of the first things I was told when I got into this business was dont celebrate till the merchant has the money. New Reps dont realize every deal has 2 closes.. First close the merchant get the contracts signed, this is the easy part. The second is to CLOSE THE BANK on the deal and get the deal funded, this is the hard part and what separates the OK closer and the really good closer

[JoeLepkoski]

And the bottom line is that no matter how frustrated a merchant or an ISO becomes when additional documents are requested, an underwriter is NOT going to fund a deal without what they deem necessary, so to those same reps FUNd mentioned above doing the TD dance after an approval, don't ever spend the commission until the merchant receives the funds.

[FUNd]

And the bottom line is that no matter how frustrated a merchant or an ISO becomes when additional documents are requested, an underwriter is NOT going to fund a deal without what they deem necessary, so to those same reps FUNd mentioned above doing the TD dance after an approval, don't ever spend the commission until the merchant receives the funds.

Agree with everyone here, and as far as spending the commission, bank it until you are well past the clawback period (if any). Merchants default all the time, and the last thing you want is to have to pay back a commission that's already been spent.

[TheShitzuofMCA]

I've seen cases where the funding company just doesn't have the funds at that point. This can happen for different reasons but there are shortfalls for sure and miscalculations. They will never admit it to the broker/ISO. So they will come up with excuses because they feel no deal is perfect and they can always find something negative about any deal. Most funding companies will not stop the inflow of deals they will cherry pick at that point and play preferences. As an industry I've found (MCA) companies don't like to share information or communicate with each other. Sometimes an ok or information on pay history from a previous funding is all it takes to lower the perceived risk. Its extremely frustrating when your deal gets declined at the end of the process. I feel you.

[AndyYSCISOdept]

Agree with everyone here, and as far as spending the commission, bank it until you are well past the clawback period (if any). Merchants default all the time, and the last thing you want is to have to pay back a commission that's already been spent.

I remember a time way back in the day when I had a great month and then a bout a week later got hit with 3 clawbacks for approx. 10K and that was a nice kick in the face. Needless to say my savings acct is a lot larger than its ever been because you never know.

[FUNd]

I remember a time way back in the day when I had a great month and then a bout a week later got hit with 3 clawbacks for approx. 10K and that was a nice kick in the face. Needless to say my savings acct is a lot larger than its ever been because you never know.

Ouch.