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02-03-2016, 10:13 AM #1
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Big A paper files getting declined a lot for vague reasons (smaller ISO)
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Last edited by The Cash Broker; 02-10-2017 at 02:07 AM.
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02-03-2016, 10:21 AM #2
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Yes. If you are a small ISO, I would sign up with an agency to have the ability to run credit yourself. You need a clean background to qualify, and the price to run a report is very reasonable. This way you are holding the cards when someone tells you that a decline is for credit reasons. Without this information, lenders can tell you anything, and you have no ammunition to defend yourself. It is up to you to protect your client and yourself against backdooring, because, yes, some lenders will try and steal your client and your renewals. Happens everyday. I have learned the hard way and now have very strict controls in place which has helped me catch the slicksters trying to take food off of my table.
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02-03-2016, 10:36 AM #3
Most of the big A paper lenders are not going to back door you on a deal and risk their reputation. Yes a 500k deal is huge to you but for most of these companies it just not big enough for them to take a risk like that. If you are running into these problems I would ask the banks for clarification on the decline as well as getting a copy of the underwriting guidelines from them so you can get a better understanding of how they make decisions on deals. Build relationships with the banks you work with this way when things like this come up you can easily get someone on the phone and get answers
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
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02-03-2016, 10:41 AM #4
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02-03-2016, 10:43 AM #5John 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
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02-03-2016, 10:44 AM #6
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02-03-2016, 12:28 PM #7
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02-03-2016, 12:37 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
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02-03-2016, 10:44 AM #9
Reputation points: 307559
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02-03-2016, 10:58 AM #10
Took a course on credit, by law anytime someone's credit is pulled the owner/merchant is entitled to a copy. If the owner/merchant preferably calls and requests a copy by law the company that pulled the credit needs to provide you with one. My two cents.
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02-03-2016, 12:42 PM #11
Reputation points: 10
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Thank you everyone for the feedback and advice. The support does mean something, with me being a lurker and had noticed a lot of people getting flamed for asking advice (on simple questions, I admit)
I will say that we've managed to get a solid approval for a bigger amount/longer terms/weekly payment from another excellent term lender than his current MCA company which is seeking renewal despite these obstacles. So perhaps there might just be a good ending to the story after all.
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02-03-2016, 12:51 PM #12
Big A paper files getting declined a lot for vague reasons (smaller ISO)
90 percent of funders back door deals...in some cases it's from the company itself and in other cases it's the employees of that company stealing the files......
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02-03-2016, 12:59 PM #13John 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
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02-04-2016, 12:43 PM #14
Reputation points: 3410
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When I first read this, I thought it was an exaggeration. Just had a large lender (one of their employees) back door a deal on us. The merchant accidentally put our 800 number on the application and we get a call from someone asking for the merchant in regards to his application.
Really sucks when you can't trust the people you enter into a business relationship with
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02-04-2016, 12:46 PM #15John 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
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02-04-2016, 01:02 PM #16
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02-04-2016, 01:08 PM #17John 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
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02-03-2016, 12:59 PM #18
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This thread isn't exactly a ringing endorsement now is it. I do agree that with places like the forum, if you're going to do some unsanctioned behavior a la "Back-dooring" you better pray you don't get caught
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02-03-2016, 01:07 PM #19
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02-03-2016, 01:10 PM #20
So what is worse, a backdooring A funder, or a honest C-D, 3rd, 4th position funder?
Wall Funding ISO Team
646-979-2161
partners@wallfunding.com
http://wallfunding.com/
30 Broad St, New York, NY, 10004
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02-03-2016, 01:15 PM #21
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02-03-2016, 01:23 PM #22
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02-04-2016, 01:49 PM #23
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02-04-2016, 04:32 PM #24
Just have your attorney send a demand letter outlining the lost revenue and breach of agreement. As far as rogue employees the company is on the hook
For its employees when it comes to stealing database of merchants that cause loss in revenue. The company would have to pursue employee legally but you signed up with company not employee for liabilities
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02-03-2016, 01:21 PM #25John 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
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