[Red Dragon]

Hello everyone.
I have protocol question?
I secured a 6 month MCA for a merchant in the summer. I have since moved ISO's. The loan is 90% paid and the merchant wants me to secure another round of MCA for them.

Is it protocol to go back to the same lender and renew with them even though I'm at a different shop now?
Can the lender only renew a the deal with the merchant via the previous ISO?

Should I avoid the original lender altogether?

Questions and comments welcome.

[Michael I]

The deal belongs to your old employer. Not you .plain and simple.

[ridextreme]

when you quit your job, you lost all of your renewals. The ISO agreement is between your old boss and the funder, not you.

Welcome to the industry, and good luck.

[Red Dragon]

Thank for your insight.
I was 'pretty sure' of the answer already - but wanted to check to be 100% sure.

[Lmonus]

If the deal is 90% paid, wait until it is at 100%. Then lock up the merchant as if its a new deal.

[FCF Fund]

Read your employment agreement thoroughly, you do have rights as well. If clients contact you, the client has the choice of whom they want to work with. More often than not merchants are publicly known companies with publicly listed information, that is not private or proprietary information. Most employment agreements have clauses that are typically not even enforceable depending on what State this was organized in.

Consult an attorney and this is not a advocation to outright steal data from your ex-employer and go nuts on their contact list.

[FundingCzar]

Read your employment agreement thoroughly, you do have rights as well. If clients contact you, the client has the choice of whom they want to work with. More often than not merchants are publicly known companies with publicly listed information, that is not private or proprietary information. Most employment agreements have clauses that are typically not even enforceable depending on what State this was organized in.

Consult an attorney and this is not a advocation to outright steal data from your ex-employer and go nuts on their contact list.

Precisely. If you take outright export/steal data, its pretty obviously illegal and unethical. However, if a former client were to reach out directly to you, you are under no obligation to call your former employer and let them know/hand back the client, as your contractual agreement is over (pending non compete/non interference clauses-read your contact carefully and/or consult an attorney). An intelligent and thoughtful ISO might even ask that you continue to send the call in business on a 1099/referral basis, its mutually beneficial to do so if you have the relationship with the clients.

[ADiamond]

Thank for your insight.
I was 'pretty sure' of the answer already - but wanted to check to be 100% sure.

you could just get him an offer to have that old balance paid off through a new lender

[Karen37a]

The merchant belongs to the Original Iso until the balance is paid off or 30 days after...whatever the iso agreement states....So you cant go back to the original Lender untill its released"expired"

In Financial Services you sign either an Independent Contractors Agreement or an Employer/Employee contract. Each contract is different. The strongest contracts have clauses in them like "non compete" that can last for 1-2 years...3 max. Each state has different rules on non competes and what is enforceable or not. There are also "tortious interference" clauses.

If the client calls you or not it does not negate the contract.If the balance is paid off or not, it does not allow you to go around the ISO that you signed the non compete with. the Iso owns the client and is the person , not the ex broker who has the legal right to call them or renew them.( other brokers can do it, just the one in the non compete)

Most Isos/Lenders would not try to enforce the non compete.

If the non compete is too broad in scope or written poorly it can be tossed out of court in its entirety, some states will not toss out the whole contract but only enforce the provisions they deem to be valid.There are more things, estoppel etc

If an Iso/Lender wanted to go after an old employee you can slap a Cease and Desist on him to stop him or stall from his activities. And reverse with a surety bond on it.

There is also Data theft, where someone gets caught taking clients away.

In the end the book of business would probably have to be big enough to matter..and then you might want to do something about it.So many clients in play, everyone after them, get more clients.

Pssst. You can get him another advance pay off the balance from the old, he nets the difference.

If he is 90% paid off why didn't he renew already? make sure he is still fundable or didn't stack 10 wide.Or defaulted

[Red Dragon]

Much appreciation to all. It was really insightful and fun to hear everyone's advice.
Firstly, there was no ISO employment contract - and secondly I've informed the merchant to 'hold out' a little longer and payout the outstanding balance so I can fund him as a new 'file'.

[ridextreme]

Much appreciation to all. It was really insightful and fun to hear everyone's advice.
Firstly, there was no ISO employment contract - and secondly I've informed the merchant to 'hold out' a little longer and payout the outstanding balance so I can fund him as a new 'file'.

you understand you need to fund somewhere else right

[Red Dragon]

Yes. Thank you. I was able to fund the merchant elsewhere yesterday.