[Sean Cash]

Chambo works for Yellowstone. everyone knows they are the bootm feeders. is he saying he will screw over isos unless they have the money to sue?

I don't think he was making a direct reference to the company he works for. He is just pointing out the inconvenient truth that people don't always want to hear in this industry or in any industry. A big company can use its leverage to bully really small companies. Sometimes it's complete BS but normally the small company complaining about getting screwed did not read their contract. That's almost always how it happens. ISO signs a contract that basically surrenders control of the deal and commissions. Everything goes well in the beginning until the bigger company decides to enforce the fine print in the agreement. The small company then stomps its feet.

Now if you were not so small, the bigger company may be willing to hold off on its right to take possession of the deals because of how much business is being transacted. Even On Deck Capital has clauses that give them the right to take your deal for themselves if they so choose if a certain amount of time passes or something happens. Maybe they'll enforce it. Maybe they won't. Don't like the contract? Don't sign it. Don't have an attorney reviewing your contracts? Then you probably will get screwed at some point down the road.

if you can't afford to hire a lawyer for just a couple hours to read, reword, or negotiate an agreement for you, then you're probably not going to survive in this industry. If you can't afford to sue someone or hire a lawyer when or if you get sued, then you probably won't survive in this industry. This business is extremely litigious and yet there are still so many battles that never make it to the courtroom. There are 989,830,588,340 ways to get sued or accused of something in financial services regardless of whether or not the allegations are true. If your contracts aren't iron-clad, then you're basically not building anything.

Now I know nothing about mfsglobal's case, but this whole "pretending to be a direct funder" thing is not a new trend. There are probably more than a hundred companies that operate as such. They're direct for deals they love and they farm out deals they don't. Whether or not you get paid depends on your contract. Whether or not they were transparent about this depends on your contract. Block out whatever they tell you and just refer to the contract.

What's important?
The contract
The contract
The contract
The contract
The contract
The contract
The contract

And if your contract was iron clad and it was definitely breached, sue. No one should be in financial services, especially this realm of it if they can't afford a lawyer.

[mfs01]

I agree with sean bash.

But on that note, MFS Global does not farm their deals out. We've built our business around the motto of being "ISO focused". If we don't want the deal, we'll simply tell the ISO, giving them an opportunity to get the deal approved elsewhere.

[JayBallentine]

I agree with sean bash.

We've built our business around the motto of being "ISO focused".

I was talking with a funder who felt that companies who are ISO focused will eventually fall by the way side. He mentioned this in passing - so I didn't get to fully grasp the "why" behind it. On it's face having brokers control paper limits some firms' abilities to profit from renewals... Was curious to know how you'd respond to this particular gentleman if he met you at a conference or something and said; "you don't have a shot if you're ISO focused!"

[mfs01]

JayBallentine - ISOs bring the business in for us and we understand that ISOs do encounter issues with other funders in regards to turn around times, loss or reduction of renewal commissions, lack of support, etc...
If the funding company isn't ISO focused, then I elieve that ISOs wil stop submitting to the funding company.

Although most funding companies have their own inhouse sales team, MFS Global doesn't. Our model is based around that fact that all of the business coming through the door is from ISOs. The ISO is our client and ISOs should get all the support they need from the funding company.
So my response would be that, "you will have a hard time staying in business if you AREN'T ISO focused".

Albert
isosupport@mfsglobal.com

[JayBallentine]

To each his own.

I would have a tough time sleeping at night knowing that the fate of my business rests squarely in the hands of some outside brokers.