[NewWay ISO]

I never knew that the ISO may be responsible for helping organize second positions????
This is what I found in National Funding's ISO Agreement:

Non-Solicitation Protection. Without National Funding’s prior written consent, Applicant Manager shall not, and shall not directly or indirectly cause or permit any Manager Agent or third-party to, solicit or contract with a Merchant for alternative business funding programs that (i) would result in an “all assets lien” against the Merchant’s business assets that supersedes National Funding’s position or (ii) in any way could reasonably be expected to compromise the repayment of the National Funding loan, in each case, only for as long as the Merchant has any outstanding balance or other obligations owing to National Funding under the Loan Program. During the term of this Agreement and for a period of 12 months after the termination or expiration of this Agreement, neither Party shall encourage, solicit, or induce, or in any manner attempt to encourage, solicit, or induce, any individual employed by, or individual or entity providing consulting services to, such other Party or any of its subsidiaries to terminate such employment or consulting services.

Other lenders have the same guidelines.
Any input? Has anyone ever had any serious problems with violating this?

[FUNd]

Never had a problem. Simple, we don't solicit 2nd positions for our merchants.

[NewWay ISO]

You're the saint of the industry..

[FUNd]

You're the saint of the industry..

I said our merchants, not your merchants.

[J.Celifarco]

I said our merchants, not your merchants.

100% exactly true..

[Mmarano]

I love hearing Noobs talk about "The Rules" Lol.

[Cfairbank]

As far as I know, nearly every lender/funder has non-interference provisions (we do and every ISO agreement I have seen does as well) -- if you fund a deal with a company you should NOT be selling that customer a second position with another funder. And the vast majority of ISOs understand this is part of rules of the road, and you'll get cut-off if you violate it and the lender finds out.

[funding pro]

This seems like a no-brainer to me. You paid me a commission for bringing you the account. I will keep that account with you and try to renew it with you for as long as the merchant has a need for financing.

If the merchant comes to me and says "I need more money, someone else is telling me they can give me more money without paying this off" and the bank cant do anything else at this point I instruct the merchant that would be a breach of their agreement with the bank and hope they listen.

[mcaguru]

One of the first things a retail business owner does is Sign a Lease on a Store front location. lets use the term of 2 years 24 Months term at 5,000 that's $120,000 Commitment ?? Why when a broker arranges a merchants (first) MCA Advance are they not committing a stack alongside the first position funder?? on the landlord for adding another liability on the merchant who already has a position to his landlords??

[funding pro]

One of the first things a retail business owner does is Sign a Lease on a Store front location. lets use the term of 2 years 24 Months term at 5,000 that's $120,000 Commitment ?? Why when a broker arranges a merchants (first) MCA Advance are they not committing a stack alongside the first position funder?? on the landlord for adding another liability on the merchant who already has a position to his landlords??

I feel like you are just trolling us now with this shtick. A lease agreement doesnt have any language in it that dictates to the business owner how to operate their business. One has nothing to do with the other. I really hope you are just trolling because if not, you are just way too far out of touch with reality.

[mcaguru]

I feel like you are just trolling us now with this shtick. A lease agreement doesnt have any language in it that dictates to the business owner how to operate their business. One has nothing to do with the other. I really hope you are just trolling because if not, you are just way too far out of touch with reality.

I understand but all of us in here are in the business of funding business owners and 9 out of 10 business owners have a landlord and many landlord have trouble collecting from tenants (and would not be surprised if the ones taking out advances are a higher risk to landlord then someone with no debt/advance) so we would be in big trouble if Landlords get together and put a clause in contract that states they can NOT take an MCA first position advance while they are an active tenant.

[J.Celifarco]

I understand but all of us in here are in the business of funding business owners and 9 out of 10 business owners have a landlord and many landlord have trouble collecting from tenants (and would not be surprised if the ones taking out advances are a higher risk to landlord then someone with no debt/advance) so we would be in big trouble if Landlords get together and put a clause in contract that states they can NOT take an MCA first position advance while they are an active tenant.

nothing about this makes any sense. All you are trying to do is justify stacking. If first position banks want to protect themselves with clauses in their contracts that is their right. Yes it will screw over the stackers but why would the 1st position bank care.

[mcaguru]

nothing about this makes any sense. All you are trying to do is justify stacking. If first position banks want to protect themselves with clauses in their contracts that is their right. Yes it will screw over the stackers but why would the 1st position bank care.

I would need landlords that owns strip malls with dozens of tenants who are already on the edge with the Amazons eating there lunch to tell me that what i am saying makes no sense when tenant take on a first position 500K advance.

BTW. we love first position deals!

[Michael I]

One of the first things a retail business owner does is Sign a Lease on a Store front location. lets use the term of 2 years 24 Months term at 5,000 that's $120,000 Commitment ?? Why when a broker arranges a merchants (first) MCA Advance are they not committing a stack alongside the first position funder?? on the landlord for adding another liability on the merchant who already has a position to his landlords??

theory and common sense play no role here . if an iso is signing that he won't stack his merchants ,then he has to oblige by it .

[FUNd]

One of the first things a retail business owner does is Sign a Lease on a Store front location. lets use the term of 2 years 24 Months term at 5,000 that's $120,000 Commitment ?? Why when a broker arranges a merchants (first) MCA Advance are they not committing a stack alongside the first position funder?? on the landlord for adding another liability on the merchant who already has a position to his landlords??

Try this argument in court.

[J.Celifarco]

It really isnt that difficult.. Simple rule to live by.. DONT BITE THE HANDS THAT FEED YOU
If you fund the first position yourself dont stack on it.
If a deal comes a cross your desk where they have a first position from a bank you do a lot of business with dont stack on it. If the merchant wants a stack reach out to the bank and let them know their merchant is shopping.
You may lose a couple of deals short term, but long term the banks you work with will remember you did this. The next time you need them to make an exception on a deal I bet they do it.
This isnt that difficult, bottom line;
DONT THINK SHORT TERM, AND DONT BE AN ASSHOLE

[Regium]

It really isnt that difficult.. Simple rule to live by.. DONT BITE THE HANDS THAT FEED YOU
If you fund the first position yourself dont stack on it.
If a deal comes a cross your desk where they have a first position from a bank you do a lot of business with dont stack on it. If the merchant wants a stack reach out to the bank and let them know their merchant is shopping.
You may lose a couple of deals short term, but long term the banks you work with will remember you did this. The next time you need them to make an exception on a deal I bet they do it.
This isnt that difficult, bottom line;
DONT THINK SHORT TERM, AND DONT BE AN ASSHOLE

Operation_Upshot-Knothole_-_Badger_001.jpg

[HDF]

"BTW. we love first position deals!"

Unrequited

[J.Celifarco]

and another thread gets hijacked

[mcaguru]

BTW..I was at the IFA (International Factoring Association) they had a session called MCA "friend or Foe" the session was attended by hundreds of factoring companies and they were screaming at the MCA panelist for claiming they (they as the A paper lenders) are destroying there clients and they were treating the A paper MCA Panelists as if "they" are "KING STACKERS".\


MY POINT IS WAKE UP AND REALIZE OUR ENTIRE INDUSTRY IS UNDER ATTACK BY THE BILLION DOLLAR FACTORING HOUSES!!! (YOU HEARD IT FIRST HERE!).

[J.Celifarco]

BTW..I was at the IFA (International Factoring Association) they had a session called MCA "friend or Foe" the session was attended by hundreds of factoring companies and they were screaming at the MCA panelist for claiming they (they as the A paper lenders) are destroying there clients and they were treating the A paper MCA Panelists as if "they" are "KING STACKERS".\


MY POINT IS WAKE UP AND REALIZE OUR INTIRE INDUSTRY IS UNDER ATTACK BY THE BILLION DOLLAR FACTORING HOUSES!!! (YOU HEAR IT FIRST HERE!).

100% I have lost deals because they had a factoring deal the would not allow them to take an MCA. Has happened to me a few times. Luckily the majority of the business' we deal with dont use factoring companies.. Outside of trucking and some of the construction deals, I rarely see them

[mcaguru]

100% I have lost deals because they had a factoring deal the would not allow them to take an MCA. Has happened to me a few times. Luckily the majority of the business' we deal with dont use factoring companies.. Outside of trucking and some of the construction deals, I rarely see them

I used to think the same until i got the data from the factoring association. to give you an idea (on a simple level) go to any interstate and you will see in a span of seconds large tractor trailers rip-by one after the next and majority of the items on those trucks are factor-financed.


TIP OF THE DAY!!

(since john sees so few factor deals)...go after merchants you feel may need products factored and you got a great MCA deal!! enough out of me for this thread!

[Michael I]

side note i love how all the stackers have a clause like that in their contracts and iso agreements also

[J.Celifarco]

i dont see them but trucking is only a small part of my business. I seriously think you are making a much bigger deal out of factoring companies then they are. Also has nothing to do with stacking clauses in MCA contracts.

[mcaguru]

i dont see them but trucking is only a small part of my business. I seriously think you are making a much bigger deal out of factoring companies then they are. Also has nothing to do with stacking clauses in MCA contracts.

The US factoring market showed a particularly strong increase by 16.6% from last year to EUR 97.67 billion. that's 112 BILLION!!