[mikem]

Hi all,

I'm a new solo MCA broker and I recently started submitting apps through one of these larger ISO's that send out my deals to a handful of funders. I've submitted 35 apps and statements thus far and only 2 deals closed. My question is: is a 2 to 35 ratio a normal ratio? If not, should I be tweaking my leads source or the operations end? Also, I seem to always have a tough time getting answers for my clients (from this ISO) as to where their deal is holding. Is that how it is in the industry? No answers and ****ty customer service? Just wondering.

Thanks
Mike

[MCNetwork]

6% pull through? That isn't good. You should be around 25+% pull through since all your customers are in the market for working capital. Are you closing the deals or is the ISO closing them for you? Also, how many of your 35 apps were actually approved for an advance in the first place? If most of them were declined, then 2 deals closed isn't too bad...

[brokerCompany]

BAd. Get a new ISO. Followup on all your declined deals and application. You are getting screwed.

[dailyPLUNDR]

Did you pitch 35 offers and only close 2? If so, you'll likely need to try and set the merchants expectations from the beginning so that daily payments and 1.4 factors don't come as such a shock. In terms of communication with your ISO, it sounds like you may have a subpar representative. Open lines of communication are incredibly important and will allow you to get more deals done faster. A good ISO rep will explain to you why certain files may have been declined. This allows you as a broker to identify and screen out files that are not worth your time. Doing so will also help you build your relationship with the ISO as you are not clogging up their pipeline with deals that will never fund. Sounds like you may need a new co-broker; Feel free to PM me with any questions.

[mikem]

Iso is closing. About 8 approved.

[FUNd]

Did you pitch 35 offers and only close 2? If so, you'll likely need to try and set the merchants expectations from the beginning so that daily payments and 1.4 factors don't come as such a shock. In terms of communication with your ISO, it sounds like you may have a subpar representative. Open lines of communication are incredibly important and will allow you to get more deals done faster. A good ISO rep will explain to you why certain files may have been declined. This allows you as a broker to identify and screen out files that are not worth your time. Doing so will also help you build your relationship with the ISO as you are not clogging up their pipeline with deals that will never fund. Sounds like you may need a new co-broker; Feel free to PM me with any questions.

Agreed. Fully. Set the expectations. Telling merchants you go out 5 years with monthly payments at single digit interest rates just to get 'apps' in, does nobody any service, not you, your co-broker, processor, the funder, UW, or the merchant.

The only numbers that count are the ones on your bank balance. Everything else is fluff.

[mikem]

Not 35 offers, 35 requests for offers and only 8 approved for a proposal. Ended up killed either by client or by funder by final approval.

[Michael I]

Not 35 offers, 35 requests for offers and only 8 approved for a proposal. Ended up killed either by client or by funder by final approval.

Funding 1 out of 4 approvals is not bad . The question is why do you have so many declined . The submissions I bring in it is like one out of 35 that don't get any approval .

[Zach]

Mike,

If you would like some general pointers on which lenders to sign up and how to place deals, I would love to guide you and help you get set up.

Feel free and give me a call or email any time and I'll get you set up with my top ten favorite lenders, along with my own product line, of course.

I look forward to speaking with you!

[Octane181]

Mike, sent you a PM

[MCNetwork]

If you have an 8 out of 35 approval rate, then you're not pre-screening the merchants properly. Make sure your merchants meet the minimum funding criteria before chasing paperwork. It will save you a lot of headache.

[Michael Jagiello BGF]

But they're your merchants no? Typically if you have an ISO sending your deals out for you, you should remain in the forefront of communication. That's really the only way to know if they're getting declined or if the ISO is simply trying to cut you out of the picture.

[Bank]

I can get those dead files brought back to life ...

d.

Robert Menzel
Office - 516-299-8240
Cell - 631-235-3423
rmenzel@bizbrella.com
www.bizbrella.