[AndyYSCISOdept]

Colonial is the platform for SFS and their syndication program.

[Michael I]

andy lol . i know what it is .my question is are they considered direct lenders or not . The whole 'direct lender" is a very vague term

[Lexgroup]

These types of shops bulldog merchants into taking the capital. On the other hand you can use intelligence to build a real book of business. I'd rather have clients that love me and keep coming back than turning and burning and letting a lesser man receive the commission.

Well put! To lie is a short term solution; if you want quality clients for the long term, people need to trust you.
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[lrodda]

These shops actually make my job easier. I know how to cut them at the knees. How do you get a prospect to trust you? Inform them, not to the point that it kills the deal but at least tell them how the industry works and how you are different.

[cardinalequity]

These shops actually make my job easier. I know how to cut them at the knees. How do you get a prospect to trust you? Inform them, not to the point that it kills the deal but at least tell them how the industry works and how you are different.

Since it hasn't been answered clearly I'd be curious as to how you define a direct funder. Is it someone who never ever brokers a deal out, and funds 100% of every deals always without any outside syndication? You mentioned seeing a broker pulling daily, so why is that not enough to meet your criteria of a direct funder? Even reputable and enormous lenders like SFS have a huge platform for syndication. (this is to Michael's point) So if you send 1000 deals to SFS and syndicate 50% on every one of them aren't you entitled to view yourself as much as a funder as them since you've matched them dollar for dollar? Do YSC, FORA and the majority of other well known Funders that broker deals out when needed disqualify them as a REAL FUNDER in your eyes? I think this subject matter has become more political than anything else. Views will be different and vary depending on many circumstances and situations. Direct funders are in the eye of the beholder perhaps? lol

The one thing we can all agree upon is that the friction on this topic is due to the brokers that lie about who they are and what they really do.

Lastly if someone not back dooring a deal qualifies them as a real funder, doesn't that really mean that your qualification is limited by what you know or your lack thereof. Meaning your list isn't a list but more of an esoteric ideal constantly changing. (I can assure you there is probably people on your list that pushed a deal of yours to another channel and you just don't know about it)

[lrodda]

Since it hasn't been answered clearly I'd be curious as to how you define a direct funder. Is it someone who never ever brokers a deal out, and funds 100% of every deals always without any outside syndication? You mentioned seeing a broker pulling daily, so why is that not enough to meet your criteria of a direct funder? Even reputable and enormous lenders like SFS have a huge platform for syndication. (this is to Michael's point) So if you send 1000 deals to SFS and syndicate 50% on every one of them aren't you entitled to view yourself as much as a funder as them since you've matched them dollar for dollar? Do YSC, FORA and the majority of other well known Funders that broker deals out when needed disqualify them as a REAL FUNDER in your eyes? I think this subject matter has become more political than anything else. Views will be different and vary depending on many circumstances and situations. Direct funders are in the eye of the beholder perhaps? lol

The one thing we can all agree upon is that the friction on this topic is due to the brokers that lie about who they are and what they really do.

Lastly if someone not back dooring a deal qualifies them as a real funder, doesn't that really mean that your qualification is limited by what you know or your lack thereof. Meaning your list isn't a list but more of an esoteric ideal constantly changing. (I can assure you there is probably people on your list that pushed a deal of yours to another channel and you just don't know about it)

Doesn't matter how they get the money. What matters is the rate that is given to me to present to a client. If there is too many middle men on the deal then its hard to have a competitive offer. I am referring to ISO shops who claim to be funding companies but are just brokers. Usually bigger funding companies give the cheapest offers. As long as I can get competitive offers quickly with good commission payout it doesn't matter to me if they are direct or not. Yes I've seen broker shops on bank statements and I still won't say they are direct funders because they don't only fund deals, they broker out also. Chances are they are going to send to the same banks I'm already signed with anyways.

[Sean Cash]

Direct funders are in the eye of the beholder perhaps? lol

Quote of the day. Direct funders are in the eye of the beholder

[lrodda]

Either you go for highest commission or cheapest deal you choose how you want to work. What I will not accept is lies. If your shop isn't dedicated to funding deals then I'm not sending you any. Simple.

[KTK]

I think this is very simple. If a deal comes in and you, OR your shop's management calculates commission at first glance you are an ISO. If a deal comes in and you, OR your shops management is calculating ROI you are a lender.

If you are reading this post and either have never thought about the investment when looking through the statements, or don't know what ROI means (lol, kidding - I hope not) - and the words "we are direct lenders" have ever come out of your mouth or across your finger tips on the keyboard....well than you are a liar and misrepresenting yourselves.

Even though we just recently bought into our first deal, I never say I'm a lender. Why? Because when a submission comes into our house, by mental default, the first thing I calculate is the potential commission we make if or when it funds. The day I start calculating risk vs reward at a deals first glance, and as my gut reaction, is the day I become a "direct lender".

Thats my humble opinion anyway.

[lrodda]

I think this is very simple. If a deal comes in and you, OR your shop's management calculates commission at first glance you are an ISO. If a deal comes in and you, OR your shops management is calculating ROI you are a lender.

If you are reading this post and either have never thought about the investment when looking through the statements, or don't know what ROI means (lol, kidding - I hope not) - and the words "we are direct lenders" have ever come out of your mouth or across your finger tips on the keyboard....well than you are a liar and misrepresenting yourselves.

Even though we just recently bought into our first deal, I never say I'm a lender. Why? Because when a submission comes into our house, by mental default, the first thing I calculate is the potential commission we make if or when it funds. The day I start calculating risk vs reward at a deals first glance, and as my gut reaction, is the day I become a "direct lender".

Thats my humble opinion anyway.

Well put mate.

[Funder Mark]

If I fund a deal on my own contract, with my own money, even if it is on someone else's platform, I am a direct funder. If I do 1 a week, I may be a tiny one, but I am a direct funder. If at any time I tell an ISO to send me a deal to make an offer, and I fund it through another company, even if I syndicate 50%, I am no longer a funder, I am a liar.

[KTK]

^ agreed

[happysales]

Who you should consider a direct lender depends on why you are interested in the question. Anyone who invests in their own deals through syndication can call themselves a direct lender including broker shops.
If you are looking to submit deals to a direct lender for your purposes a direct lender is a company that only funds through their own resources and doesn't shop deals around to other lenders.

[golf2014]

Some brokers know where to bring the deal to..instead of having the merchants credit run 22 times by every lender.

[FUNd]

^yep

[AndyYSCISOdept]

If I fund a deal on my own contract, with my own money, even if it is on someone else's platform, I am a direct funder. If I do 1 a week, I may be a tiny one, but I am a direct funder. If at any time I tell an ISO to send me a deal to make an offer, and I fund it through another company, even if I syndicate 50%, I am no longer a funder, I am a liar.

What if you do both? I don't think it can be that black and white. However, like other people have said, if you have any doubt in your mind then you should probably just avoid the label altogether.

[Funder Mark]

What if you do both? I don't think it can be that black and white. However, like other people have said, if you have any doubt in your mind then you should probably just avoid the label altogether.

I was pretty clear. If I tell the broker I will fund it, and I do it through someone else, I am a liar, because the other guy could have gone directly. If I tell him I have the resources to get it done, then I am being an honest broker. People can definitely be both. All I meant to show is when someone becomes a liar.

[AndyYSCISOdept]

I was pretty clear. If I tell the broker I will fund it, and I do it through someone else, I am a liar, because the other guy could have gone directly. If I tell him I have the resources to get it done, then I am being an honest broker. People can definitely be both. All I meant to show is when someone becomes a liar.

Fair enough

[jotucker1983]

This is just my opinion, but I would say you have four structures and here's how you would classify them:

* Direct Funder/Lender: They have built their own underwriting platform, model, and formula to lend out either merchant cash advances, alternative business loans, or both, with adequate ROI. They will use their own monetary resources which most of the time comes from either equity and/or debt sources.

* Direct Funder/Lender/Broker/Syndicate: Everything under the Direct Funder/Lender, but sometimes they decide to broker deals out that they don't want to fund internally and in the process of brokering out that deal, they might syndicate on it by putting up a portion of the capital.

* Broker: All they do is broker deals, which is find merchants in situations of needing capital, connects them with the sources who have the capital, and facilitates the underwriting/closing process by passing paperwork back/forth. They do not have their own platforms, underwriting teams, or underwriting "formulas", they are reliant on those who are direct funders/lenders for these resources.

* Broker/Syndicate: Everything under Broker, but on some deals they are willing to participate in the risk by adding their own capital resources to a portion of the funded amount, to increase their overall "commission take home" on the deal.

A Direct Funder/Lender (no matter if they solely fund their own deals or also broker out some deals) should have some type of online press about them in terms of an equity round, debt facility, local business coverage, or something. That's how you can know if they are truly direct, also they should be registered or licensed "somewhere" in terms of a commercial finance lender, you should do your research in finding that information.

[AndyYSCISOdept]

^^Well said^^

[happysales]

That is very true, for a newbie who doesn't know where to send a deal a trustworthy broker can be a life saver, but it is hard for a newbie to know who is trustworthy.

[happysales]

That is very true, for a newbie who doesn't know where to send a deal a trustworthy broker can be a life saver, but it is hard for a newbie to know who is trustworthy.

[HGB]

We are a direct funder made up of small business owners looking to help other business owners. He can send deals directly to me and if be happy to answer any questions and provide him with any information I can.

holley@capassist.com

[AndyYSCISOdept]

^^ We would love to have our relationship restored and start funding again^^

[happysales]

I was pretty clear. If I tell the broker I will fund it, and I do it through someone else, I am a liar, because the other guy could have gone directly. If I tell him I have the resources to get it done, then I am being an honest broker. People can definitely be both. All I meant to show is when someone becomes a liar.

Well said and totally to the point.