[J.Celifarco]

Hi Brokers
I am wondering if its a good idea to run the applicants credit before forwarding to a direct funding company. It seems to me this is a good idea so we can determine if these applicants are A,C,D paper etc. Also we know some applicants lie; so i would rather not send worthless paper to a funder. However they will lose some points on the score. So please let me know if you think it would be worthwhile. Or any suggestions. Thanks in advance.

It costs money to pull peoples credit, so you are incurring an extra expense on every file for what I deem very little gain. If the main lender you work with gives you solid info on your declines and get to files in a timely manner you should be ok.. Submit to them hopefully if they are your main lender the majority of the deals will work with them, if not take the info from the decline and decide where to send the file.
Unless you are a huge ISO who has negotiated better buy rates based on funding numbers I dont see a need for this. In the case that you are that size and quotas to hit with different banks then you need to pull credit so you know what bank fits best but other then that scenario I dont see a need for this

[Tony Zenkewich]

Thanks everyone who has replied. Greatly appreciated.

[jotucker1983]

Tony,

I wouldn't waste the time nor capital pulling your client's credit, not only does it add more legal procedures into your activity but your Funders/Lenders are going to pull their credit again anyway. On top of this, Funders/Lenders usually have a credit "formula" that they go by to score a merchant, rather than just a standard Experian pull for example.

Unless you are a huge ISO who has negotiated better buy rates based on funding numbers...

This is not on topic, but I keep hearing about this on the Forum, are there Funders/Lenders really doing this? I've been using a lot of the same partners for awhile and nobody I work with says, "Hey John Tucker, unless you are funding $1 million a month we can't give you the special premium pricing". It's always the situation of if the merchant I've submitted is A Paper and qualifies for the special premium pricing, then it's available. Why wouldn't it be?

I'm trying to figure out from a Funder/Lender's perspective, how would this make sense?

So let's say you have a solid A Paper deal on the table from a guy that only submits 3 apps a month, but this particular deal is solid. The guy tells the Funder that his merchant has 3 competing offers and the Funder could easily win this account by giving the broker the special premium pricing that the merchant qualifies for, but opts not to give it to him (because he's not a large broker house) and thus loses the account?

I guess this is another thing that Funders/Lenders are doing that I just think makes no sense lol.