Results 1 to 21 of 21
Hybrid View
-
02-01-2016, 10:19 AM #1
Deal Killer & Solution
Lately I have been noticing that many of my deals have been declined in final underwriting due to drop in deposits, multiple negative days recently, and similar things. What really gets me is one deal that was declined Friday because of a massive drop in volume, something I could have easily known if I had asked for a MTD when I first got the file that week.
Overall, would it be worthwhile to ask merchants for a MTD once we are halfway through the month, so these situations can be avoided?
-
02-01-2016, 10:45 AM #2
- Join Date
- Jul 2014
- Location
- Online
- Posts
- 965
YES.
After the 10th (or so) day of the month I usually request a MTD depending on the type of file. I check the ending balances and beginning balances, NSFs, and overall amount of deposits (not including transfers) - and if the last two months are iffy- I request. You should know that every funder is different and there should be a standard for this type of question.
I say rule of thumb and a courtesy to the Merchant to get the UW expedited - Request it. A lot of leads and deals "die" because the lack of a complete document request list because it is always the last 4-6 months of Banks, CC, and just an App. Meanwhile- it can be more than that and as soon as you get an email response that says "Based on the information provided, we cannot give a preliminary offer until we have your last 10 years of rent checks and your first born" - you always have to be prepared and give your Client an honest "heads up" about what they can expect depending on the amount and term they are requesting!!Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
-
02-01-2016, 10:49 AM #3
- Join Date
- Mar 2015
- Posts
- 78
^^^
Also, I've saved a couple of deals by regularly monitoring the client's banking through bank login (if they have online banking).
One time a client's account had dropped a few dollars below negative after getting stips and right before funding. Upon looking inside, I urgently told him to drop whatever the hell he's doing, grab as much cash as possible and RUN to the bank to deposit it. Deal saved
-
02-01-2016, 11:04 AM #4
- Join Date
- Jul 2014
- Posts
- 1,746
I personally prefer to go back to the client every 20 minutes and ask for another piece of documentation. It interrupts their day, and makes them good and mad, so by the time we fund, they never want to talk to me again!
-
02-02-2016, 12:05 AM #5
-
02-01-2016, 12:18 PM #6
I think some things are out of your control. If oyu ask for these documents upfront the merchant may decide to work with a different iso who asked for less paperwork. I hate when this happens but it can't be avoided. I dont think asking upfront for this works, but when you contract the merchant and give the list for final stips, this would be the right time to ask
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
02-01-2016, 12:20 PM #7jotucker1983Guest
Sure why not? It wouldn't hurt to grab a month-to-date bank activity sheet, but a deal can still be killed in the 11th hour for a variety of reasons, such as:
- The drop off in sales as you mentioned
- A tax lien that pops up
- A judgment lien that pops up
- The merchant is found on some industry fraud list
- The merchant's bank statements turn out to be fraudulent
- A hidden cash advance balance is found
- The merchant is severely behind with their landlord
My point is that there will always be that "final verification" process and within that process, the deal can be killed for a variety of reasons. All you can do is pre-qual the best you can upfront and collect the initial documents.Last edited by jotucker1983; 02-01-2016 at 12:22 PM.
-
02-01-2016, 12:29 PM #8John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
02-01-2016, 12:32 PM #9
- Join Date
- Jul 2014
- Location
- Online
- Posts
- 965
Agree. I'm still stumped on why we don't take a full professional approach to any type of service or sales in this industry. Even for "originations"- Why is there such a knowledge gap in the common sense to this industry? These are standard pre-qualifying procedures.
Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
-
02-01-2016, 12:53 PM #10
I agree with this 100%. I think my biggest advantage when competing on deals is my understanding of underwriting. I am able to give people realistic expectations on what to expect when the numbers get released by the bank which makes it an easier close. I love when I am competing on a file and I tell the guy he is going to qualify for aprox 20k-25k and the guy I am competing against tells him he is going to qualify for 100k. When the offer comes back at what i told them more often then not I am going to win the deal
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
02-01-2016, 07:17 PM #11
- Join Date
- Sep 2015
- Location
- Miami, Fl
- Posts
- 148
-
02-01-2016, 12:40 PM #12jotucker1983Guest
Well, most of the time they do, but on some deals they come up literally at the last minute. I've had deals killed for tax liens that the merchant didn't tell me about upfront, side cash advance balances the merchant didn't tell me about upfront, even Underwriting discovering at the last minute that the bank statements were manipulated in some type of way.
-
02-01-2016, 12:41 PM #13
Assuming the deal is not fraud, getting the MTD would help us in knowing about the drop off, or another recent advance, The rest should be found beforehand, but considering what % of deals have offers made and never request a contract, I can see why that is not standard in looking for those upfront.
-
02-02-2016, 09:05 AM #14
- Join Date
- Jul 2014
- Location
- Online
- Posts
- 965
Deal Killer & Solution
Why are new brokers not up for it? Here is why...
Many new brokers who are the "Entrepreneurs" of our industries come from closers of other companies. These companies give limited information and not enough training and transparency to their closers. Once the closer understands their worth and/or realized that the leadership they needed to grow was not given- they leave, take their book or everyone's book, start their own LLC and the cycle starts again. We now have closers who are the owners of these ISOs.
What's wrong with this?
I am not saying that being a closer is bad... It's actually a great thing when it comes to sales. The one aspect these new brokers are missing is the professionalism to communicate, do business development, and actual office work like flipping the pages in a document the correct way. Closers know how to close. Closing is what they are good at.
It is like a bunch of caveman running around trying to build a better wheel but missing the tools and not wanting any help to do so. The confidence and arrogance of some have made such a negative impact on how direct partners are working with them, how new broker offices convert leads, and the most important part- THE MERCHANTS EXPERIENCE!
simple prequaification that requires you to be personable and professional should not be something that brokers shouldn't "feel like doing" - it should mandatory and its your damn job! Brokers are so used to making $10k pay days by wiping their @$$ with their deals and shoving them off and getting mad at the Funder for every issue that ultimately could be avoided by NOT* recycling old tactics.
I may not sell puppies, but I do know how to sell money, make money, keep money, and build a strong team by being a leader and have everyone break bread at the end of the day.Last edited by WhoisKingsley; 02-02-2016 at 09:30 AM.
Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
-
02-02-2016, 09:42 AM #15
- Join Date
- Sep 2015
- Location
- Miami, Fl
- Posts
- 148
-
02-02-2016, 10:12 AM #16jotucker1983Guest
Amanda,
Mind if I play devil's advocate a little bit ?
Here's the thing, it's been communicated to me on this forum that there are these large brokerages who spend a significant amount a month on "leads", to where their reps just have to come in, sit down, get fed warms leads all day, and close. If that's the deal, it makes sense to keep working under a "larger house" because you get access to a $20,000 - $100,000 (or more) monthly marketing budget and you do not have to spend time creating a sales pipeline, the marketing budget does it for you.
But we all know that's never the deal.
- You are usually fed leads here or there, but for the most part the "house" is going to require you to go out and produce the vast majority of your leads through whatever "creative" way you can come up with as they will usually give you no strategy for doing this other than randomly calling out of a phone book.
- Or, they might use the Glengarry Glenn Ross model where the guy who is closing "the most" gets the most leads, which only keeps the top guys high on the board and the low guys at the bottom.
So if the rep for the most part has to produce his own leads and close his own deals, that's 95% of the job. The other 5% in relation to setting up a Funder Network, managing your vendors/suppliers, setting up your virtual office and filing your own taxes are mainly routine tasks. So when you say said rep is missing tools, what tools are you referring to?
Why should a guy share his commission with a larger house, as well as potentially be cut off from his renewal compensation (when he severs ties with said large house) when he technically can do the entire position independently?
Going independent also gives him liberty on structuring deals and competing better on deals. Working under a house limits you only to "their" relationships and pricing, going independent opens you up to other products and pricing. Plus, you can add in other products for cross-selling. Eventually you want to get to a point where your renewal/residual portfolio is covering your personal expenses, which is "financial freedom". You can't do that unless you go independent.Last edited by jotucker1983; 02-02-2016 at 10:15 AM.
-
02-02-2016, 10:28 AM #17
- Join Date
- Jun 2015
- Posts
- 3,326
-
02-02-2016, 10:32 AM #18
Joe gotta disagree with you. You dont need to own your own company to have financial freedom. You just need to work for a company that compensates you at a fair level and if transparent and trustworthy. Now I know there are bad companies out there that treat the closers terribly but there are also plenty of good companies that understand that the closers are the ones driving their business and treat them the way they should be. Just because someone is a good closer does not mean they will be good at running their own shop.. I have seen a lot crash and burn because all of a sudden their day isnt spent calling leads and funding deals, they are dealing with banks and lead sources and have to count on other people to close the deals. I know plenty that left and came back because they realized they could make more money closing deals then trying to do the whole thing on their own. There is something to be said for working for a bigger company with the marketing budget to support its closers. If you are a good closer you can get plenty of financial freedom working for someone else if it is the right company
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
02-02-2016, 11:20 AM #19
- Join Date
- Jul 2014
- Location
- Online
- Posts
- 965
Hey John!
Okay first- There are "Houses" that I envy for their team work and open innovative environment. I am also all for personal development and if someone feels they need to grow- go ahead. What I am saying is that the Owner's should lead by example and have the others adopt whether they still work under a "House" or not. And yes- if you want to get into residuals/renewals, leads, and hierarchy- there will always be a winner and a loser. Our society is so afraid of telling it like it is. You can empower someone to do their best but that person could only take it that far and if they "belong" in the position they are working in.
No matter how the entrepreneur captures sales or what industry, there needs to be a form of professionalism. It goes far beyond doing your taxes. It's a natural tool that someone should have- that's the tool. How a company works internally with their staff by hiring, training, and leading by example is also another thing- but you can't go into anyone's house and tell them how to structure their business.
There can be endless constructive arguments here but it all comes down to professionalism and leadership whether you are independent or working for an company.Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
-
02-02-2016, 11:23 AM #20John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
02-07-2016, 12:11 PM #21
- Join Date
- Oct 2015
- Posts
- 39
I know funders have been using decision logic for some time now, but have ISO offices attempted signing up? Since decision logic can be refreshed at any time, if you can get over that hurdle from the get go (without funder's involvement), then you'll always have up to date MTD ready to send over, or not depending on what you find.
Similar Threads
-
The Problem with Bad Debt-A Solution is Available.
By Collection Specialist in forum Help WantedReplies: 0Last Post: 12-30-2015, 10:18 AM -
Pick your Questions... I have a Solution!
By WhoisKingsley in forum PromotionsReplies: 0Last Post: 08-21-2015, 01:23 PM -
money laundering charges - deal killer?
By loan in forum Deal BinReplies: 5Last Post: 08-05-2015, 05:07 PM -
CRM Solution with Automation
By rmckellar in forum Merchant Cash AdvanceReplies: 5Last Post: 06-24-2015, 12:49 PM