Results 1 to 25 of 30
Hybrid View
-
04-06-2017, 10:51 AM #1
- Join Date
- Jun 2015
- Posts
- 3,327
-
04-06-2017, 11:07 AM #2
they have a 1 in 6 chance of funding the deal. If Iso's want loyalty they should show some and submit to 2 or 3 funders instead of 6.. There is no excuse for stealing deals ever but we as ISO's want loyalty we should show some in return and try to submit where we think the deal will fund
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
04-06-2017, 01:00 PM #3
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
I totally agree with you on this John.
As a direct funder, I pay thousands of dollars a month to my analysts, pre-qualifying deals that come through our office. It is not unusual to spend hours working on a deal prequalifying it, getting me in a direct meeting with the client, moving it up to the chain for full underwriting, only to find out that the ISO sent it to six other lenders and they decided to go with someone else.
When I find this out, the ISO drops onto my **** list since they wasted my time and money. A little honesty up front goes a long way.
If an ISO wants to shop the deal to six lenders then have at it. When the client balks at price, daily payments or some other reason they won't bite, then bring it to me and we will see what we can do. Just be straight with me and don't bull**** me.
-
04-06-2017, 01:14 PM #4
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
It should only take up to 15-20 minutes to prequalify a deal. Some funders can do it in 5 minutes (run credit, plug revenue numbers in a calculator, spit out pre-approvals). Funders know that only 10-20% of their approvals will fund so they deploy most of their underwriting resources AFTER the signed contracts are in-house. If you're spending hours on a prequal then you're doing it wrong.
-
04-06-2017, 03:26 PM #5
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
Ha! Yep, I bet that is how Dealstruck, Can Capital did their underwriting. And we can see how it worked out for them, can't we? I'll bet they (and you) never looked at a P&L or Balance Sheet.
We look first at the P&L to determine true net income. Then we look at what the monthly payment would be for their desired level of funding. If they cannot afford the payment, it is a decline. That part takes ten minutes. If the client meets that threshold, it is all the work behind that which takes the time. Funders who do not do their homework go out of business.Last edited by dpFund; 04-06-2017 at 03:47 PM.
-
04-06-2017, 03:59 PM #6
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
So P&L's are required for the initial submission? You're probably the only MCA funder that asks for that upfront. And instead of declining a merchant if they don't qualify for the desired amount, why don't you approve them for a lower amount instead? It's the broker's job to manage the merchant's expectations and sell the lower approval amount.
Last edited by MCNetwork; 04-06-2017 at 04:02 PM.
-
04-06-2017, 04:21 PM #7
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
That's just it. I am not a MCA funder. :-)
And yes, if a client does not qualify for the requested amount, we absolutely recommend the lower amount they will qualify for.
The challenge is, most of the files I get have existing cash advances and I do not stack. I need to pay off all the cash advances or none of them. So if a client will not qualify for the total amount of cash advance balances, we let the broker know what the balances need to be at in order to prequalify for funding.
Hope this helps.
-
04-06-2017, 04:57 PM #8
- Join Date
- Jun 2015
- Posts
- 3,327
-
04-06-2017, 01:18 PM #9
all this said if the bank tries to backdoor the deal that makes them automatically wrong no matter how many banks the ISO submitted to. If a bank doesn't like an ISO's process turn them off and dont work with them. This doesn't mean the bank has any right to try to fund the deal on their own
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
Similar Threads
-
Fincom Capital is backdooring with a lender...
By McoupeBobby in forum Merchant Cash AdvanceReplies: 35Last Post: 10-06-2016, 09:35 AM -
What is the best course of action If I just caught a "reliable funder" backdooring?
By mikem in forum Merchant Cash AdvanceReplies: 85Last Post: 07-28-2016, 05:31 PM -
Deals blowing out/Backdooring
By Karen37a in forum Merchant Cash AdvanceReplies: 2Last Post: 07-23-2016, 12:32 PM -
lenders backdooring deals
By Paperchaser in forum Deal BinReplies: 2Last Post: 03-23-2015, 10:30 AM