[LoanShark714]

Does any body else here think this is a deal killer. When the lender requires bank log in info even for deals under 75k ?

[channin19]

If you were funding it wouldn't you want to make sure the bank statements were valid and balances were positive?

The decision logic system is pretty effective and should make the merchant more comfortable

[LoanShark714]

So Im assuming your company requires bank log in information.

[Franklin]

Where I've seen it become a problem is when the merchant speaks to his lawyer or accountant (or any adviser) and they're not aware of how cash advances work and they strongly recommend how dangerous it is to the client without also explaining why it would be necessary.
















www.UCCRadar.com

[channin19]

Not a funder. I have to agree that it raises more red flags if the merchant isn't comfortable with a 3rd party verification (either Decision Logic or a 3 way phone call with the branch business banker). The number of fraudulent statements and/or merchants trying to take multiple stacks only leads me to believe this will become a more common practice.

[mfs01]

It is common practice among funding companies to require view only access to the merchant's bank account before funding. It has actually become a standard part of the final underwriting process before funding a deal.

[MCNetwork]

Almost none of the large lenders I work with require bank login information. The stacking companies tend to ask for this because many of their deals are structured where the daily payment is a percentage of gross deposits and they have to see what the daily deposits are. Another time a lender needs login information is if the credit card split is paid back through daily ACH (CAN Capital offers this retrieval method). Since this number varies each day depending on the batch size, the login information is required. For all other MCAs or fixed ACH deals, bank login should not be required.

If necessary, funders can do a bank verification without needing to log into the account. Or the merchant can send in a month-to-date transaction report on the day of funding if there is concern about double fundings.

[GRP Funding]

If the merchant can provide username/pw to their bank account, what is the benefit to use Decision Logic vs. just logging in and pulling the data? We don't require bank login - but I am curious how Decision Logic works.

[LoanShark714]

I decided not to do business any more with a couple of lenders i know. Not cause of their restrictions/pricing/documents required. But due to the fact that they require bank log ins. Even for loans under 50k. Channin are you a salesman tryin to make money ? Or a underwriter type making it harder for salesmen like us. or just on some lenders nuts. I dont understand.

[Capital Stack]

Brian, decision logic is software built around yodlee the data provider / aggregation. theoretically you can use both options to verify prior to funding. people like DL because merchants in some cases dont want to share their user/passwords.

If the merchant can provide username/pw to their bank account, what is the benefit to use Decision Logic vs. just logging in and pulling the data? We don't require bank login - but I am curious how Decision Logic works.

[Ryan Shiroky]

If you were funding it wouldn't you want to make sure the bank statements were valid and balances were positive?

The decision logic system is pretty effective and should make the merchant more comfortable

Another way to verify is to attach a disclosure to your application, where the merchant fills in their banking info and signs off that the bank is allowed to talk to you. Then you can just call the bank and verify deposits...

This has ALWAYS been a deal breaker for some merchants, even if its a "view only" account, what business owner in their right mind would want a third party reviewing their bank account at will...???

[mfs01]

Ryan Shiroky, The view only access only needs to be active for the couple of days before funding and and a couple days after. How else are the lenders to know if the merchant is not getting double or triple funded in some cases?

Double, triple and quadruple funding has been a huge issue in the industry as of lately.

Merchants are smartening up and starting to find ways around limiting themselves to getting funded what they can afford.

As a sales person, I would want to make sure I kept my relationship with the funding companies are in good standings. And if the merchant gets funded by several companies at the same time, whether it's you're doing or not, it will still reflect on YOUR performance with the funding company. That funding company may not accept anymore of your deals as a result. Just because of one lousy deal...

To me, it wouldn't be worth it.

[Ryan Shiroky]

A funding company can not hold an ISO responsible for an irresponsible merchant. In the case where the ISO placed the merchant with multiple companies, then the funder should have a problem with that ISO... But if an ISO places a deal with me and I fund it, and that merchant then goes direct to Pearl and gets a stack, I am not going to go crying to the ISO that they sent me a huckster of a merchant... Also, we are direct lenders here and we rarely ask for bank login. In the last 3 months, I haven't even heard of any merchant being asked for it...

[Scott Williams]

It all comes down to credit score. Your subprime funders doing ACH usually want the bank log in and the prime funders don't require it. Higher risk of fraud with the subprime merchants. The prime scored merchant space is too competitive right now so a merchant will just go with a funder that doesn't require it.

[AndyYSCISOdept]

I decided not to do business any more with a couple of lenders i know. Not cause of their restrictions/pricing/documents required. But due to the fact that they require bank log ins. Even for loans under 50k. Channin are you a salesman tryin to make money ? Or a underwriter type making it harder for salesmen like us. or just on some lenders nuts. I dont understand.

I have been funding for a long time and have found that the overwhelming majority of my defaults come from deals where I have made the exception and not required log in. I typically do the log in on the phone with the merchant and after I've seen what I need to review I tell them to change their password. The primary thing I am looking for is to make sure that the merchant hasn't taken a bunch of advances during the time between their last bank statement and when I intend to fund them. I also want to make sure that the sales haven't fallen off of a cliff in the last month. I don't think that log in is a deal killer at all. In fact it allows me to be more aggressive with my pricing etc.

[AndyYSCISOdept]

ryan shiroky, the view only access only needs to be active for the couple of days before funding and and a couple days after. How else are the lenders to know if the merchant is not getting double or triple funded in some cases?

Double, triple and quadruple funding has been a huge issue in the industry as of lately.

Merchants are smartening up and starting to find ways around limiting themselves to getting funded what they can afford.

As a sales person, i would want to make sure i kept my relationship with the funding companies are in good standings. And if the merchant gets funded by several companies at the same time, whether it's you're doing or not, it will still reflect on your performance with the funding company. That funding company may not accept anymore of your deals as a result. Just because of one lousy deal...

To me, it wouldn't be worth it.

well said!!!

[LoanShark714]

Thanks for the great feedback guys. One of my concerns was that if the password leaked out some how. Wouldnt somebody be able to transfer funds to another account and stuff like that? Through online banking? I know i can transfer funds through my online banking and all I need is my log in and password. Even for lenders that require log in only for deals over 50k. Still i would imagine the merchant would be even more sensitive to releasing their private information due to bigger volume involved in bank account. If the client has other options for financing but has accepted the cost and the terms of the loan you proposed and Then you require their bank log in information on top of the fact that the loan is already expensive due to the risks involved, for me this Was an issue and now deal with lenders that dont require bank log in information. Does MTD bank statement not provide enough information if they are trying to stack? Maybe delay funding few days if they dont want to provide bank log in? What you think? Thanks

[AndyYSCISOdept]

Thanks for the great feedback guys. One of my concerns was that if the password leaked out some how. Wouldnt somebody be able to transfer funds to another account and stuff like that? Through online banking? I know i can transfer funds through my online banking and all I need is my log in and password. Even for lenders that require log in only for deals over 50k. Still i would imagine the merchant would be even more sensitive to releasing their private information due to bigger volume involved in bank account. If the client has other options for financing but has accepted the cost and the terms of the loan you proposed and Then you require their bank log in information on top of the fact that the loan is already expensive due to the risks involved, for me this Was an issue and now deal with lenders that dont require bank log in information. Does MTD bank statement not provide enough information if they are trying to stack? Maybe delay funding few days if they dont want to provide bank log in? What you think? Thanks

It's funny you mention that, right now I am actually in the process of Beta testing the whole MTD versus a One time log in. I do feel like a one time log in on the phone with the merchant is a great compromise. The biggest issue with a MTD is that it is able to be forged, and I have seen it done. Let me know what you think. We are on a roll at YSC right now and have really been pumping out the deals. shoot me an email to chat more about it.