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  1. #1

    Do MCA Lenders Pay MCA ISO's Similar To How Mortgage Lenders Pay Mtg Brokers

    I am curious how does the MCA Lenders pay their ISO's Brokers, how similar or different are they from how these mortgage lenders payout their mortgage brokers? So what are the distinct differences if any between these two lending companies funding home owners vs funding businesses ?

  2. #2

    Do MCA Lenders Pay MCA ISO's Similar To How Mortgage Lenders Pay Mtg Brokers

    Easy take funded amount multiply your commission = your pay!

  3. #3
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    Do MCA Lenders Pay MCA ISO's Similar To How Mortgage Lenders Pay Mtg Brokers

    honestly, with some of the buy rates you get from some of these MCA lenders nowadays, you would think they try to pay like mortgage lenders! however, in general, the commission is considerably higher. What I find is that the larger the advance, the less these lenders tend to want to pay. they'll approve the deal, but then at times, the max commission is 4-5 pts... -__-

    If you have yourself a $500,000 deal, wouldn't it be nice to make a 12pt commission on it? The factor rate is the usual 1.36-1.40 but you'll get hit w/ one of those okey dokes "you make 5 points on this deal, Joe..."

  4. #4
    Senior Member Reputation points: 32264 Funder Mark's Avatar
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    If there really is any funders who do that to you, announce who does it? I am pretty sure that is a clear violation of your ISO agreement. Unless it clearly states that on bigger deals, you make less in commission, it sounds like they are in breach of contract.

    If you want to make up to 12 points on all your deals, pm me with your info, we will speak on Monday.

  5. #5
    jotucker1983
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    Option A: You can try to make 8 - 10 points on a $100,000 deal ($8,000 - 10,000 commission) by pricing it higher than market pricing and risk losing it a good chunk of the time to another broker who is pricing it more in line with its paper grade.

    Or...

    Option B: You can price it properly based on its Paper Grade (let's say it's A Paper and you price it between 1.12 - 1.18 over 6 mths) and actually win the deal with commission of 3% for example, then get 5 renewals out of the merchant over the next 30 months.

    I've always operated under Option B and a good majority of the time, I won my deals from Brokers operating under Option A who are trying to get 10 points on one deal, and end up getting 0 points because the deal with to another company.

    So you can obviously use whichever method you prefer, but if you have a merchant that's A Paper for example, and you are trying to push a 1.30 over 6 months on them to make 10 points on one deal, you better hope I don't call them lol.
    Last edited by jotucker1983; 11-15-2015 at 08:21 PM.

  6. #6
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    Good point.

  7. #7
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    I think in reality the point system has very little to do with you "winning the deal" its obvious that you are a better salesman than said broker and are actually looking out for the clients interest. You seem to be more interested in helping than cramming a D paper deal down the throat of an A paper merchant. This is all regardless of the points being made on the deal in my opinion..

  8. #8
    Quote Originally Posted by jotucker1983 View Post
    Option A: You can try to make 8 - 10 points on a $100,000 deal ($8,000 - 10,000 commission) by pricing it higher than market pricing and risk losing it a good chunk of the time to another broker who is pricing it more in line with its paper grade.

    Or...

    Option B: You can price it properly based on its Paper Grade (let's say it's A Paper and you price it between 1.12 - 1.18 over 6 mths) and actually win the deal with commission of 3% for example, then get 5 renewals out of the merchant over the next 30 months.

    I've always operated under Option B and a good majority of the time, I won my deals from Brokers operating under Option A who are trying to get 10 points on one deal, and end up getting 0 points because the deal with to another company.

    So you can obviously use whichever method you prefer, but if you have a merchant that's A Paper for example, and you are trying to push a 1.30 over 6 months on them to make 10 points on one deal, you better hope I don't call them lol.
    You made me smile Joe... thanks

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