[skideeppow]

So I got a merchant some offers back in Sept. I told the merchant, well here is what i got from ODC, and gave him the terms.

The merchant said he was going to get bank financing.

Fast forward to yesterday, the merchant calls me and i get his banks and cc statements. Sure enough there is an on deck payment. I ask the merchant when he got the funding and sure enough he tells me in Sept.

Turns out right after (3 days) i got him the ODC offer, he called in to ODC, got lower rates and funded there. It was well within my lock period. (submitted 3 days after and closed 6 days later).

They are claiming that my rep at ODC closed the deal out so it was fair game for a call in.

Meanwhile, I lost out on a $50k deal with no recourse.

Thoughts? Shouldn't i have been protected on the deal?

[FCG]

Same happened to me with Rapid earlier this week.

[skideeppow]

Same happened to me with Rapid earlier this week.

really? I have been with them since 2008, and granted I dont do a **** ton of deals, i do business and lots of renewals.

Just sucks, especially with the ****ty leads I have been harvesting.

They want more business, yet i have to compete with them directly. My quality of leads is such that it does not warrant a ODC submission.

[WestCoastFunding]

That is terribly unfair. There should at least be a 14-30 day lock-in for the ISO. Orherwise they have no protection.

Looks like I'll never submit to them again.

[CO1]

Brokers are being pushed out this year by the dozen! The bigger guys are opening there own sales floor! And if it doesn't fit into there box they give it to there sales floor and they shop it out! This has been going on for years now!

[MCNetwork]

It's important to be tight with your On Deck rep so these things don't happen or he'll fight to get you paid. That's why I take my guy out to lunch every few months. This industry is all about relationships.

[WestCoastFunding]

So you gonna stack On Deck?

[HDF]

One option for dealing with this crap (but not entirely practical for everyone)

Call you clients with "X" funder or considering "X" funder and advise them that there has been a movement within that company to contact business owners directly and circumvent the advisor channel.

The reason for the heads up is to alert them that dealing with that funder/lender directly drastically compromises the objectivity needed to get the business the most suitable rates and terms as funder "X" clearly has one program to offer. And going straight with "X" also restricts them from being informed of the evolving programs coming to the street all the time which should be evaluated constantly as part of the funding review process.

So between now and when renewal time approaches you might reach out and offer superior alternatives or creative ideas. Or let the failing and flailing companies steal clients. This will become an even hotter topic as time goes by..

[Karen37a]

It's important to be tight with your On Deck rep so these things don't happen or he'll fight to get you paid. That's why I take my guy out to lunch every few months. This industry is all about relationships.

This is true. But I avoided certain companies period the end.

If you have a book of business you can ask them to let you out of your non compete and take your book( I am not recommending this )
I would put it in writing or call back and get exact verification on what happened. Whats to stop them from doing it to you again?Demand payment or stop doing business with them if they do not have the decency to address your concerns and make you whole. If that Ae is still there tell them to claw him back.

What HDF said is good, but you never saw merchants go into the "witness protection program" as I call it. Thats when they are coached by the Lender or ae to never pick up the phone again when you call or tell you that they changed their mind last second.

People wonder why the brokers stack. You create vengeful monsters

You are better off with a Direct Lender who cares about you and if the merchant pays .3 and $5.17 cents a day more, tough... get an add on, weekly payment or a pre p adden.. I shouldn't even say this, more competition...stay away from my good lenders

[HDF]

What HDF said is good, but you never saw merchants go into the "witness protection program" as I call it.

Who never saw that? What are you talking about?

This happens quite a bit, and my main point is to take advantage of any excuse to pick up the phone and perform maintenance on the client at every chance. One of which is when a failing, unprofitable, publicly-traded with shareholders revolting, POS bubble of a company that is about to burst turns its back on ISOs.

[Enablement Data]

This can happen to anyone.

@MCNetwork is correct. Stay tight with your OnDeck rep.

[blKC]

This would never happen at Kalamata Capital. Our ISO's know that if we receive direct contact from the merchant, we notify the ISO partner immediately and pay them if a deal closes during their exclusivity period. Although we may have a tighter approval box then some of our competitors, we always try to do right by our partners.

[Chambo]

So I got a merchant some offers back in Sept. I told the merchant, well here is what i got from ODC, and gave him the terms.

The merchant said he was going to get bank financing.

Fast forward to yesterday, the merchant calls me and i get his banks and cc statements. Sure enough there is an on deck payment. I ask the merchant when he got the funding and sure enough he tells me in Sept.

Turns out right after (3 days) i got him the ODC offer, he called in to ODC, got lower rates and funded there. It was well within my lock period. (submitted 3 days after and closed 6 days later).

They are claiming that my rep at ODC closed the deal out so it was fair game for a call in.

Meanwhile, I lost out on a $50k deal with no recourse.

Thoughts? Shouldn't i have been protected on the deal?

their in house guys get better rates than you, so you can have the same $25,000 deal, but their factor will be lower (think of it as automatically discounted in house)

Is this an unfair advantage? Certainly, but they are NOT the only funder that operates this way. THE ONLY WAY one can compete with that...if you are going to use the same fund, is to discount heavily

When you have a "first one back with contracts gets the deal" approach

[Chambo]

Brokers are being pushed out this year by the dozen! The bigger guys are opening there own sales floor! And if it doesn't fit into there box they give it to there sales floor and they shop it out! This has been going on for years now!

They open up their own sales force, pay the reps $30K a year (so they have complete control as employees) and then pay them next to nothing in commissions on top of that. They can immediately present a discounted deal, because due to almost no commission, the deal is automatically discounted to what you were offered. PLUS, this way, they have complete control of the deal

[skideeppow]

their in house guys get better rates than you, so you can have the same $25,000 deal, but their factor will be lower (think of it as automatically discounted in house)

Is this an unfair advantage? Certainly, but they are NOT the only funder that operates this way. THE ONLY WAY one can compete with that...if you are going to use the same fund, is to discount heavily

When you have a "first one back with contracts gets the deal" approach

Sure, I have been doing business with them since 2008. I know how they work. I have no problem taking a discounted rate, but to not even get the call and offer it to me. And i guard my accounts by following up with them frequently. I would have never know about this had i not reached out to him last week. Just poor form.

[funding pro]

Without really being of any help I can tell you a few things.

1. You're not going to hear from anyone at ONDK here. They have a company wide policy to not discuss issues on the forums.
2. This sucks. It's why I never tell my reps to close out any of my open approvals there. They are often the best deal short of going to a term lender and to have a deal in your pocket for 30 days can be a huge advantage.
3. Maybe try going up the ladder, maybe even as high as Paul. Without knowing who your rep is, my experience has told me in situations like this they are often going to try and make the ISO happy especially when it is with a direct rep instead of another ISO.

[skideeppow]

Without really being of any help I can tell you a few things.

1. You're not going to hear from anyone at ONDK here. They have a company wide policy to not discuss issues on the forums.
2. This sucks. It's why I never tell my reps to close out any of my open approvals there. They are often the best deal short of going to a term lender and to have a deal in your pocket for 30 days can be a huge advantage.
3. Maybe try going up the ladder, maybe even as high as Paul. Without knowing who your rep is, my experience has told me in situations like this they are often going to try and make the ISO happy especially when it is with a direct rep instead of another ISO.

Thanks, i have requested and will receive a call from a supervisor. And i never told her to close it out. She did it on her own accord. My rep told me she is no longer there because of her poor performance.

[Sachip24]

happened once to me while back with Rapid, they stalled on a offer, I had put my cell on app later that night Rapid rep calls my cell phone pitching me...but we were able to nip that in the bud real quick following morning.

[skideeppow]

I talked to them today. Situation resolved, we came to agreement. They are going to pay me half on my next deal.
It is what it is.