[WhoisKingsley]

Ps- I know there are companies doing their own individual things to help and Fundry is def. one of them as everyone can see. But collectively... We have a lot of work to do

[jotucker1983]

Centralized Industry Association

Guys, the fact remains as I stated on this Forum prior, the only way to solve this is for the large funders, lenders and brokerages (the ones who control the vast majority of industry market share) to put money in a pool and create a centralized industry association/authority. The authority would be funded by dues from all players and would license/regulate all activities within the merchant cash advance and alternative business lending side of things in terms of "ethics".

Annual dues would keep it funded/operating and every sales rep would be placed into a database with a licensing number, as well as required to complete continuing education every 3 years. To be initially licensed, some reps could get a "by" due to experience, and others will have to take/pass an exam.

A rep can be reported by a partner (lender or funder) as well as a merchant, and the central authority would investigate the situation and either put a "mark" next to the rep or withdraw the complaint if it's found to be faulty. After a certain number of "marks", the rep would be banned from selling the product for "X" amount of time. In addition, all reps must disclose their licensing number, any caught selling the product and their marketing material does not disclose their licensing number, would be fined "X" amount similar to how V/MC card brands will fine an MLS for not disclosing the ISO/MSP they will board a merchant with.

Either we do this as an industry, or the government does it, which one do you want? I would prefer if we do this because the government is going to come in here "regulating" and turn a flame into a forest fire.

[YuliyaG]

Centralized Industry Association

Guys, the fact remains as I stated on this Forum prior, the only way to solve this is for the large funders, lenders and brokerages (the ones who control the vast majority of industry market share) to put money in a pool and create a centralized industry association/authority. The authority would be funded by dues from all players and would license/regulate all activities within the merchant cash advance and alternative business lending side of things in terms of "ethics".

Annual dues would keep it funded/operating and every sales rep would be placed into a database with a licensing number, as well as required to complete continuing education every 3 years. To be initially licensed, some reps could get a "by" due to experience, and others will have to take/pass an exam.

A rep can be reported by a partner (lender or funder) as well as a merchant, and the central authority would investigate the situation and either put a "mark" next to the rep or withdraw the complaint if it's found to be faulty. After a certain number of "marks", the rep would be banned from selling the product for "X" amount of time. In addition, all reps must disclose their licensing number, any caught selling the product and their marketing material does not disclose their licensing number, would be fined "X" amount similar to how V/MC card brands will fine an MLS for not disclosing the ISO/MSP they will board a merchant with.

Either we do this as an industry, or the government does it, which one do you want? I would prefer if we do this because the government is going to come in here "regulating" and turn a flame into a forest fire.

The spirit of this all sounds great but there are some challenges...

1. Self regulation will just create a market inefficiency for would be capitalists to take advantage of. Let me explain... each new funder who pops is not required to get a license under a "self regulatatory" framework. They can raise a ton of cash and recruit all the bad brokers who've been "black listed" and immediately capitalize on the fact that brokers have no where to place their paper. In fact, that's what would happen, guys would start spin off companies left and right...

2. "Large funders" are not the solution and this is DOA as the framework you envision requires deep collaboration, down to sharing a bunch of info that funders are not willing to, and have no incentive to share with one another.

3. Junk cases will flood the system under your solution regarding reporting. Guys are fighting for any edge they can get. I can see it now, someone hiring someone in India just to constantly report brokers posing as merchants, other brokers and so forth - immediately denigrates the integrity of the whole thing. Makes a BROKER paying anything useless.

These are just three things that come to mind... The self regulation solution can't and won't happen. There are some real problems in the industry and I don't think self regulation works or that government regulation is necessary.

I think decentralization is the key to the industry's survival.

[bsmith]

Centralized Industry Association

Guys, the fact remains as I stated on this Forum prior, the only way to solve this is for the large funders, lenders and brokerages (the ones who control the vast majority of industry market share) to put money in a pool and create a centralized industry association/authority. The authority would be funded by dues from all players and would license/regulate all activities within the merchant cash advance and alternative business lending side of things in terms of "ethics".

Annual dues would keep it funded/operating and every sales rep would be placed into a database with a licensing number, as well as required to complete continuing education every 3 years. To be initially licensed, some reps could get a "by" due to experience, and others will have to take/pass an exam.

A rep can be reported by a partner (lender or funder) as well as a merchant, and the central authority would investigate the situation and either put a "mark" next to the rep or withdraw the complaint if it's found to be faulty. After a certain number of "marks", the rep would be banned from selling the product for "X" amount of time. In addition, all reps must disclose their licensing number, any caught selling the product and their marketing material does not disclose their licensing number, would be fined "X" amount similar to how V/MC card brands will fine an MLS for not disclosing the ISO/MSP they will board a merchant with.

Either we do this as an industry, or the government does it, which one do you want? I would prefer if we do this because the government is going to come in here "regulating" and turn a flame into a forest fire.

We don't need a bureaucracy. If you feel that anyone you have worked with is a scumbag, don't work with them. Put them on your blacklist and don't ever do business with them on any level. Eventually they will run out of people to do business with and they will move on. Sure this may take a while, but if you are truly sick of them, then put the scumbags in their place. Tell them they are scumbags, tell your affiliates and partners they are scumbags, and if you really want them to stop then make it public. They are only scumbags because someone has enabled them. If the merchants are getting duped before making it to the funder, they are enabling the scumbags by going along with whatever the scumbag tells them; they enable the scumbags through ignorance. Once a merchant makes it to the funders, anything after that means the scumbag has been enabled through the funder's lack of action upon discovering the scum. Of course funders can't be blamed for first time issues, we can all get fooled once, but allowing yourself to be "fooled" more than once, especially from the same entity, is just bad regardless of what topic you are discussing. Do your part; don't work with scumbags and don't work with people who DO work with scumbags.