[Michael I]

Funders like TransMark Funding give a 15-Day exclusivity period to the agent on every deal submitted. As such, it's basically impossible for them to pull credit twice in only a few days.

When a funder pulls credit more than once in a few days, someone or several people, are not paying attention.

interesting are you basically saying that any lender who pulls credit multiple times is unorganized and chances are they are also not protecting your submission .

[bizfundingfinder]

IF a company can trust a "Broker" to be one of their contracted sales offices and pay them out $XX,XXX in commissions, why can't they accept a credit outline from a major provider? Obviously not sent via email- but even if the broker obtains the credit to better qualify the submission and put the highlights of the credit report for the submissions/UW to see before giving #s- what's not to trust? Sure it will take a few submissions and cross checking the facts but after a few "try outs" I don't think a Funding Company will say NO we have to pull credit or no offer. That's just a waste of time, money, and shows paranoia. Those are the companies that wait to see what everyone else is doing and not take the lead in creating a better partnership.

The fact that a Funder can't trust a broker is up to how that company works with their partners. If they accept anyone to send them paper- that's there fault. I'd rather have 10 good companies I can trust than 100 who will misrepresent my company and question if the submissions I get are real

Well said, Amanda.

Unfortunately we've been told by several funders that they will NOT even open the file unless they can pull credit. These are funders we've submitted and funder many deals with, on files where we've pulled our own CBR the day of and included it with the submission. This is something we're hoping to see change in the near future.

[anonymous]

Unfortunately we've been told by several funders that they will NOT even open the file unless they can pull credit.

Give it some time, fund more business with them, send files that fit their criteria, and most will be more than happy to take a look at the file prior to formal submission. That said, you have to scrub the file for them to do so and it obviously doesn't go for every lender/funder, but does apply to many of them.

[jotucker1983]

No funder will ever use a CBR run by a broker. They will never trust that it's accurate and legit.

I 100% agree with this. I have no idea why a funder/lender would skip doing any step of their due diligence process and outsource a portion of that to the broker? It's not to say they don't "trust" their broker, but because it's the funder/lender's money that's going out there (not the broker's money), it's irresponsible in my opinion not to complete your full due diligence process.

When I'm collecting statements and other information from a merchant during pre-qualification, I also ask them for their estimated credit score. The merchant can easily get an estimated credit score from their Credit Karma account or many of their credit card online portals.

After pre-scrubbing the file for NSFs, outstanding balances, etc., I send the file over to the funder/lender with full notes on the file including the merchant's request, any liens, MCA balances, estimated credit scores, etc.

It's then the funder/lender's job to underwrite the file, which is to complete the full credit reviews, legal searches, etc. I would seriously hope there aren't any funder/lenders out there who are saying, "Welp, the broker already pulled credit, so guys we don't have to complete our own credit review!"

[JSL23]

I have done that and/or had the Merchant send their docs with a credit report attached...they still insist on running credit. We always ask for credit score and inquire about any liens/credit issues as well. The Lenders should run credit once an offer has been accepted to CONFIRM the information they receive from the Broker/Merchant....I'd say the issue is 60% on the Lenders, 30% on the ISOS and 10% on the Merchants themselves(they sometimes lie about their credit or leave out information that can help).

[J.Celifarco]

I 100% agree with this. I have no idea why a funder/lender would skip doing any step of their due diligence process and outsource a portion of that to the broker? It's not to say they don't "trust" their broker, but because it's the funder/lender's money that's going out there (not the broker's money), it's irresponsible in my opinion not to complete your full due diligence process.

When I'm collecting statements and other information from a merchant during pre-qualification, I also ask them for their estimated credit score. The merchant can easily get an estimated credit score from their Credit Karma account or many of their credit card online portals.

After pre-scrubbing the file for NSFs, outstanding balances, etc., I send the file over to the funder/lender with full notes on the file including the merchant's request, any liens, MCA balances, estimated credit scores, etc.

It's then the funder/lender's job to underwrite the file, which is to complete the full credit reviews, legal searches, etc. I would seriously hope there aren't any funder/lenders out there who are saying, "Welp, the broker already pulled credit, so guys we don't have to complete our own credit review!"

I disagree with this I have a couple of relationships that allow me to handle parts of the underwriting process on my end if it is doing a Land lord call as long as i record it or sending a credit report over for the initial underwriting ( in this case they will pull credit right before funding to confirm the credit given by me was correct) Never had a problem with either of these but it comes down to what type of relationships you have with the banks you work with.. Its things like this that allow us to do a good amount of ISO business even though we are a broker ourselves..

[sigmundpannu]

In the mortgage business lenders accept credit reports from brokers because the lender has the ability to actually log in to the credit report providers website to confirm that the credit report was not altered by the broker. I am not sure why our industry does not adopt the same procedure. It would eliminate the brutal beating a merchants credit takes during the application process.

[CreditGuy]

There are different versions of a FICO score depending on which bureau and which score version a lender uses. The score a consumer sees may not be the same score the lender uses. It doesn't matter if the report isn't altered, it matters if the score is the one the lender has built their credit grid around.

[RobertTide]

interesting are you basically saying that any lender who pulls credit multiple times is unorganized and chances are they are also not protecting your submission .

What I meant is that any funder who pulls credit multiple times is likely unorganized. Otherwise, they'd know they already pulled the merchant's credit (if they were more organized). I mentioned the app exclusivity period because a few (not many) offer such protection when an agent sends an app in. So it makes sense that it should be impossible for them to pull credit again in just a few days if their policy is to work with the original submitting agent only, for that exclusivity period. So yes, I guess a by-product of them being unorganized could also be that they may not be protected the submitting agent.

NOTE: Several funders say they'll protect the agent, but only a very few (such as TransMark Funding) actually put it in writing.

[ridextreme]

In the mortgage business lenders accept credit reports from brokers because the lender has the ability to actually log in to the credit report providers website to confirm that the credit report was not altered by the broker. I am not sure why our industry does not adopt the same procedure. It would eliminate the brutal beating a merchants credit takes during the application process.

The only way a lender can view a credit report is by running credit, which will result in a hard inquiry. They're not able to log into one of the three credit bureaus to view a report without purchasing the right to which give the customer an inquiry.

If you are sharing the same access provider's account between the broker and the lender, than that is a different story. I don't think the MCA industry is going to start letting brokers use their same log-in credentials and same account. I don't even think that is legal.

[sigmundpannu]

Not referring to the customers provided credit report but a cbr pulled from a vendor such as credco which does tri merge reports. There is a verification code on the cbr that they use logging into credco.

[Davincinc]

Solution!!
Provide a credit report from creditchecktotal.com,
cost $1 cancel after you get or advise client to keep open so client can see who you submit too!!

this credit pull is from all 3 bureaus and 85% of true non broker ran lenders will use as a soft pull.

Lastly if you need Credit Pulls removed from clients CREDIT who would other wise be A paper but the MCA world took it?

I have credit repair SP who works on referral only, Can pull up to 20 inquires per month for a base fee. He also will work with get their personal credit restored, divorce, and bankruptcy etc.

PM With need of service for referral.

Thank you

Steven
Davincinc.com

[ridextreme]

I have credit repair SP who works on referral only, Can pull up to 20 inquires per month for a base fee. He also will work with get their personal credit restored, divorce, and bankruptcy etc.

PM With need of service for referral.

Thank you

Steven
Davincinc.com

There is no way anyone can remove negative information. Don't pay anyone who claims they can. All they will do is write a letter to the credit bureaus claiming the account is not theirs, or it's incorrect. They then have 30 days to verify it with the creditor (original creditor, or collection agency). If they don't, it gets removed, but often times it's put right back on there after the creditor reports it again the following month. Anyone can do this on their own without falling into all the credit repair scams.

[jotucker1983]

I have credit repair SP who works on referral only, Can pull up to 20 inquires per month for a base fee. He also will work with get their personal credit restored, divorce, and bankruptcy etc.

PM With need of service for referral.

Thank you

Steven
Davincinc.com

I'm also in agreement that most credit repair companies are mainly a sham, with exaggerated promises to people in desperation of a "quick credit fix" that does not exist.

- The only way to get something removed is if it's not yours. You can also get inaccurate information updated or corrected. You can also fight to get information that should have dropped off removed.

- You can do all of these things yourself as long as you understand the laws related to personal credit and contact the applicable bureaus directly.

- There's also no such thing as a "quick credit fix", even if you are in need of one.

- You build positive credit over time and you maintain it over time, through a combination of installment/revolving credit, paying on time, keeping your credit limits high so you don't go over 10% utilization, paying taxes on time, not getting sued, and properly managing your expenses so you don't have to file bankruptcy.

[Karen37a]

Some brokers cant run credit because they haven't been approved to do so. Site inspection, background check , locked cabinets , passwords on computers ,etc.

Some lenders do take the credit report that you generate but certain lenders will not take it no matter what, from anyone that I know of ( 2 big ones), even for a preliminary screening of the deal.

Still doesn't address the issue of a Lender running the credit 3 times for the same file.,in 3 days. They do not have an in house system to see who sent in a file and do not have a period where they "freeze or hold" the file for the original ISO that sent it. Its first to close.

People mistake the meaning of" we hold the file for 30 days "

They mean ...their in house sales force will not make the attempt to close the file without you for 14-30 days but if another ISO sends it, its first to close.

Certain merchants are not loyal and also shop the deal to other ISO's not realizing they are not a direct lender and its going right back to the same 7 lenders. Also if you get backdoored, your file might get loose.

I use to wonder why a competing broker would send the file to all these different lenders when I knew certain lenders were not a good fit...I could only surmise that they thought..if i send it to so and so first, i am locking the file to my ISO for 30 days etc, no one else can take it , cause they have no where else to go.

First to close