[mikem]

I don't know how this can ruin anyone's life. You sent a deal to an ISO these things should be expected.

If I tell ISO B that funder tried backdooring them I think the funder would loose a decent client-ISO B and it would be traced back to the rep who is highly involved in the firm not just some sales rep. I'm not a fan of whistle blowing but I hate the backdooring that goes on in this industry.

[anonymous]

If I tell ISO B that funder tried backdooring them I think the funder would loose a decent client-ISO B and it would be traced back to the rep who is highly involved in the firm not just some sales rep. I'm not a fan of whistle blowing but I hate the backdooring that goes on in this industry.

http://www.wikihow.com/Know-the-Diff...Lose-and-Loose

[AndyYSCISOdept]

I don't know how this can ruin anyone's life. You sent a deal to an ISO these things should be expected.

RIDE, this was exactly what I thought was happening...
So often I get a call from an ISO who sent the file to another ISO claiming to be a direct lender (who in turn sent it to us to fund) and when I make an offer and fund they call me trying to cut out the person they sent the deal to because "Theyre backdooring me"

The fact is they didn't backdoor anything, all they did was send the deal to a funder to get the deal done. LEARN WHO YOURE WORKING WITH BEFORE BLASTING THEM ON DF

[ridextreme]

So often I get a call from an ISO who sent the file to another ISO claiming to be a direct lender

99% of the people that claim to be direct lenders are simply lying. Direct Lenders don't make outbound cold calls. The few that do also broker deals out anyway, so what's the big advantage about "claiming" to be a direct lender? If you DID work for a direct lender, do you not make any commission off of the deal anyway?

Everyone wants to lie and brag that they're calling from a "direct lender" so they feel important I guess.

[NoBigDeal]

so what's the big advantage about "claiming" to be a direct lender?

Simple, brokers give themselves a bad name overall to perspective merchants. Merchant's want to go to the direct source because they know it's cheaper.
It's easier for an ISO to lie to a merchant so they could collect docs and once they already have a full file they could start being slightly more honest about who they really are

[FUNd]

Merchant's want to go to the direct source because they know it's cheaper.

I'd like to go directly to the source on almost everything I buy. Why do I shop retail? Because I have convenient access to products and a vast array of brands to choose from, and the extra I pay usually outweighs the time I would have to spend going to each individual vendor.

[MCNetwork]

Direct Lenders don't make outbound cold calls.
Everyone wants to lie and brag that they're calling from a "direct lender" so they feel important I guess.

LOL I beg to differ. I work at the inside sales group for a top 5 funder and we make a TON of outbound cold calls. We tell merchants "Why would you want to work with a broker who charges you a commission when we can get you the wholesale rate?"

Works every time...

[J.Celifarco]

LOL I beg to differ. I work at the inside sales group for a top 5 funder and we make a TON of outbound cold calls. We tell merchants "Why would you want to work with a broker who charges you a commission when we can get you the wholesale rate?"

Works every time...

Yes but if you cant fund in house do you then try to broker it out to other funders?? i assume you do so all this means is that the original information you gave to the merchant is a lie. I used to work inside sales for a top funder and I did the same thing, I thought it would give me credit with the merchant by saying I was a direct funder. What I have learned with experience, I have gotten more deals done telling people the truth that I am a broker who sole job is to find you the best deal possible

[Chambo]

LOL I beg to differ. I work at the inside sales group for a top 5 funder and we make a TON of outbound cold calls. We tell merchants "Why would you want to work with a broker who charges you a commission when we can get you the wholesale rate?"

Works every time...

That's a One Trick Pony response. You are limited by your one source...as opposed to a broker who has (essentially) unlimited funding resources

[mcashark]

ridextreme - "99% of the people that claim to be direct lenders are simply lying. Direct Lenders don't make outbound cold calls. The few that do also broker deals out anyway, so what's the big advantage about "claiming" to be a direct lender? If you DID work for a direct lender, do you not make any commission off of the deal anyway?

Everyone wants to lie and brag that they're calling from a "direct lender" so they feel important I guess."

says the guy that works for a direct lender

[mikem]

The fact is they didn't backdoor anything, all they did was send the deal to a funder to get the deal done. LEARN WHO YOURE WORKING WITH BEFORE BLASTING THEM ON DF

I guess I don't know what backdooring means...I just thought that if a funder calls the merchant and says "we cant reach the ISO that sent us the deal so we are taking it on" means they are attempting to backdoor, sorry for the n00b mistake.

and I didn't blast anyone...yet.

[NoBigDeal]

I guess I don't know what backdooring means...I just thought that if a funder calls the merchant and says "we cant reach the ISO that sent us the deal so we are taking it on" means they are attempting to backdoor, sorry for the n00b mistake.

and I didn't blast anyone...yet.

It seems like many people will have different definitions, so let's just throw it out there and see what comes up as a common denominator.
How would you define, "back-dooring" a deal?

I think it's simply cutting out any party involved in a deal that put work into getting it funded and wasn't compensated for the work they put in. But the key is that the deal has to fund.
It's just a whole lot of wasted time if the deal doesn't even end up going anywhere

[rmckellar]

As someone making a funding decision, I pick up the phone on very infrequent occasions, especially if it's one that I really want to get. A lot of merchants are very receptive to the person actually making the decision on how much they are going to be offered and how amenable those terms are. We always pay the commission to the originating brokers, we would never backdoor someone in any situation. That being said, I've only had one ISO have a problem with it, and they had just started in the industry.

To me it's like this: if you have a problem with me speaking to a merchant that may be receiving my own money or my investors', then you either have serious complexes and trust issues, or you are trying to get over on me in one way or another. Either way, I don't like it. I'm an open and transparent guy, if I pick up the phone it's just to hammer out terms or to lock a merchant down before another company scoops him up.

[Michael I]

As someone making a funding decision, I pick up the phone on very infrequent occasions, especially if it's one that I really want to get. A lot of merchants are very receptive to the person actually making the decision on how much they are going to be offered and how amenable those terms are. We always pay the commission to the originating brokers, we would never backdoor someone in any situation. That being said, I've only had one ISO have a problem with it, and they had just started in the industry.

To me it's like this: if you have a problem with me speaking to a merchant that may be receiving my own money or my investors', then you either have serious complexes and trust issues, or you are trying to get over on me in one way or another. Either way, I don't like it. I'm an open and transparent guy, if I pick up the phone it's just to hammer out terms or to lock a merchant down before another company scoops him up.

i halfway argue with this . i do trust my lenders but i do not trust anyone to close a deal for me . if you start going over terms with the merchnat , next thing will be that you feel you locked him and saved the deal by going down to 5% let say and i should be kissing your toes . while i might feel i could have closed him at the full 12% and screw you . as a lender or an iso you always want to be transparent and let each other know what is happening . maybe you can 3 way with the iso and make him stay on mute .
fyi this happened to me where i got paid 1% on a 510k 3 years ago because the lender wanted to keep talking direct to the merchnat .

[FUNd]

i halfway argue with this . i do trust my lenders but i do not trust that anyone to close a deal for me . if you start going over terms with the merchnat , next thing will be that you feel you locked him and saved the deal by going down to 5% let say and i should be kissing your toes . while i might feel i could have closed him at the full 12% and screw you . as a lender or an iso you always want to be transparent and let each other know what is happening . maybe you can 3 way with the iso and make him stay on mute .
fyi this happened to me where i got paid 1% on a 510k 3 years ago because the lender wanted to keep talking direct to the merchnat .

Making an underwriting call with specific questions for the merchant is one thing but completely taking the file over, calling the merchant, and shooting out pricing without the ISOs consent is generally frowned upon. Not a good way to forge trust.

[Michael I]

Making an underwriting call with specific questions for the merchant is one thing but completely taking the file over, calling the merchant, and shooting out pricing without the ISOs consent is generally frowned upon. Not a good way to forge trust.

agreed .
this was richard last line "if I pick up the phone it's just to hammer out terms or to lock a merchant down before another company scoops him up".

[FUNd]

agreed .
this was richard last line "if I pick up the phone it's just to hammer out terms or to lock a merchant down before another company scoops him up".

Yeah, that's the last file he'd ever see.

[CHAMP3]

This sounds more common then not with small ISO shops in the marketplace with whom have no experience. Therefore they get prayed upon.

[mikem]

but completely taking the file over,calling the merchant, and shooting out pricing without the ISOs consent is generally frowned upon. Not a good way to forge trust.

Yeah well thats what happened...they took the file over, called the merchant and shot a price without ISO B's consent, that's what I'm frowning about.

[AndyYSCISOdept]

Point Ride!

[J.Celifarco]

I love when merchants ask me "are you a direct lender" The first thing I say to them is no and why would you want me to be. If a broker lies to a merchant and says to them I am a direct lener and you should only work with direct lender I will win that deal more often then not. At some point someone came up with the only work with direct lender pitch and for some reason people still think it works. It is old and used and needs to go away it just dont work

[AndyYSCISOdept]

JC, I honestly think that is the most intelligent rebuttal to this whole direct lender farce.

The truth is, I am not a direct lender personally, I broker deals to the in-house funders at YSC(meaning not shopped outside the 4 walls of the office), ultimately I am providing a lot of options for said ISO and/or merchant but I don't need a title of Direct lender and I think my track record backs up my assumption that this model works.

[HDF]

JC, I honestly think that is the most intelligent rebuttal to this whole direct lender farce.

The truth is, I am not a direct lender personally, I broker deals to the in-house funders at YSC(meaning not shopped outside the 4 walls of the office), ultimately I am providing a lot of options for said ISO and/or merchant but I don't need a title of Direct lender and I think my track record backs up my assumption that this model works.

Good point Andy. BTW: What percentage of deals do you eventually fund away from your in-house funders?

[HFS]

I don't want to ruin anybody's life and I'm pretty sure this will...

I got backdoored by bfs, called the director. His answer was "we have nothing to do with internal sales" ... said thanks and never submitted a deal again.
Do the same.

[FUNd]

I got backdoored by bfs, called the director. His answer was "we have nothing to do with internal sales" ... said thanks and never submitted a deal again.
Do the same.

Funny, I got paid out of nowhere on an old renewal with BFS, and I hadn't submitted a deal to them in the 6 months prior. I also never did high volume with them and they could have easily cut me out. Sorry they did you wrong like that, but my experience was pretty good.