I don't think shady funders backdooring brokers is what's squeezing them out... once you catch them (i hope) you move on and use one of the many reputable funders out there. The industry is just maturing, which naturally raises the barrier to entry. Yes, if you have an IP phone and a website you can theoretically start a shop, but the more experienced, larger brokers are savvier and probably have better options than you do. They will know which funder gives a merchant his best deal, and if you're not equally savvy you won't be able to compete for the same merchant's business. Since you have to spend a lot more on marketing than we did 5-10 years ago to get the same number of approvals that you aren't competing on, you better to be able to close at least 50% of the ones you get to make it sustainable. If you can do that you can still make money in this space, but if the sales pitches I hear when people cold call my cell phone are any indication, most of you will not survive.