Results 1 to 25 of 46
-
05-09-2016, 06:41 PM #1
- Join Date
- Mar 2015
- Posts
- 32
Second Position On The 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 Fundings 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 Merchants business assets that supersedes National Fundings 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?
-
05-09-2016, 06:47 PM #2
- Join Date
- Jul 2014
- Posts
- 1,746
Never had a problem. Simple, we don't solicit 2nd positions for our merchants.
-
05-09-2016, 06:51 PM #3
- Join Date
- Mar 2015
- Posts
- 32
You're the saint of the industry..
-
05-09-2016, 06:58 PM #4
- Join Date
- Jul 2014
- Posts
- 1,746
-
05-09-2016, 09:34 PM #5
- Join Date
- Apr 2014
- Location
- Washington DC
- Posts
- 421
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.
Carl Fairbank
Founder & CEO boldMODE
www.boldmode.com
Carl@boldmode.com
Founder & former CEO of Breakout Capital (sold to SecurCapital in 2019)
www.breakoutfinance.com
-
05-10-2016, 08:50 AM #6
- Join Date
- Jun 2013
- Posts
- 351
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.
-
05-10-2016, 10:13 AM #7John 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
-
05-10-2016, 10:32 AM #8
- Join Date
- Feb 2014
- Location
- New York
- Posts
- 162
I love hearing Noobs talk about "The Rules" Lol.
-
05-10-2016, 10:49 AM #9
- Join Date
- Dec 2013
- Posts
- 4,713
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??
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
05-10-2016, 10:50 AM #10
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 ASSHOLEJohn 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
-
05-10-2016, 11:07 AM #11
-
05-10-2016, 11:11 AM #12
- Join Date
- Jun 2013
- Posts
- 351
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.
-
05-10-2016, 11:13 AM #13
- Join Date
- Jun 2015
- Posts
- 3,325
-
05-10-2016, 11:19 AM #14
- Join Date
- Jul 2014
- Posts
- 1,746
-
05-10-2016, 11:32 AM #15
- Join Date
- Dec 2013
- Posts
- 4,713
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.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
05-10-2016, 11:33 AM #16
- Join Date
- Sep 2014
- Posts
- 430
First, it is noobz or n00bz, not noobs, and definitely not Noobs. Unless "Noobs" is some German variation since nouns are capitalized in German.
I'll also note that there are plenty of veterans that get "the rules" totally wrong too. They seem to conflate having always done it their way for their way being the correct way.
Last, I'll add my $0.02 and say that any ISO that stacks on us is terminated, regardless of how much business they bring to the table. ISO relationships are governed by contracts. If you selectively enforce your contract between you and your ISO there is no point having one. There's a reason lawyers by and large run banks, and it is because all finance relationships are contractually based. Live up to your contracted terms, period. Try to get cute and you'll get lawyered.
-
05-10-2016, 11:35 AM #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
-
05-10-2016, 11:40 AM #18
- Join Date
- Dec 2013
- Posts
- 4,713
Last edited by mcaguru; 05-10-2016 at 11:43 AM.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
05-10-2016, 11:49 AM #19John 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
-
05-10-2016, 11:56 AM #20
- Join Date
- Jul 2015
- Posts
- 1,202
"BTW. we love first position deals!"
Unrequited
-
05-10-2016, 11:57 AM #21
- Join Date
- Dec 2013
- Posts
- 4,713
I am higher risk funding house! My ISO's send me dozens of first position deals a day that got declined by the A paper guys...I will over look the following Home Based / Poor Credit /NSF's /High Risk Industries / Transportation / Construction / Out of the box situation!!
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
05-10-2016, 12:06 PM #22
and another thread gets hijacked
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
-
05-10-2016, 12:07 PM #23
- Join Date
- Dec 2013
- Posts
- 4,713
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!).Last edited by mcaguru; 05-10-2016 at 12:10 PM.
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
-
05-10-2016, 12:08 PM #24
- Join Date
- Jun 2015
- Posts
- 3,325
side note i love how all the stackers have a clause like that in their contracts and iso agreements also
-
05-10-2016, 12:11 PM #25
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
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
Similar Threads
-
2nd position 250K- 1st position Direct Capital
By ksmo1309 in forum Deal BinReplies: 12Last Post: 03-15-2016, 12:16 PM -
Seeking 1st Position Con. a 1st/2nd or 3rd Position Deal..100K GD 15K ADL 2 NEG Days
By FunderGal in forum Deal BinReplies: 5Last Post: 12-18-2015, 08:27 PM