[WhoisKingsley]

Sure, nice job, well written.

Of course the captive funder has a shot at keeping the merchant's business and if the merchant is happy, they generally won't stray. Playing games with payoff and especially zero balance letters is just a weak move to begin with. Everyone I know in this biz puffs out their chest about what a great salesperson they are, as is the tendency of salespeople. You can't be above average or a star without some measure of ego. So, as the current funder, you have a free shot at keeping the merchant on your books. Or should I call it a penalty kick?

There's still an obstacle in the way, the competing broker, but you have the advantage. So, use your best sales skills to keep the client. Take your free shot, but if you miss, and the client still wants the letter, you've lost for one reason or another. Concede. Send the letter and let the merchant move on. All you do by withholding payoff letters, when the merchant is clearly going a different direction, is stack up a bad rep in the industry and a sour taste in the merchants mouth. You can't win them all, and you're not going to keep a client around by handcuffing them to your bumper.

I do not believe in withholding pay off letters- trust me. It was brought to my attention by another Broker the difficult time he was having obtaining a payoff letter from his Merchant. Now, we all know that there is a 50/50 chance it could be a lie on either the Broker or Merchants part, but when we got down to it- it was the Funder. Though the Funding Company WAS NOT an "A/B Paper" Funder, I reached out to some underwriters and another Funder to get the scoop on why in the world does it take sooo long? After reviewing the protocol (that is like the protocol of many other companies) I found that even though those "A/B Paper" companies want to keep their Merchants- they DO ADHERE to a Merchants request for a pay off letter at any time they request one. They do ask questions, as anyone would, but the findings are really baffling. I wish I had the correct numbers and would love data on this but know when I say "A lot" "Most" etc. the % if probably pretty dang high.

Merchants who call for a payoff letter (most of the time) do not have a solid offer in black and white. When questioned about the expectation about their new search for funding, the Merchant has no idea or gives a number that is clearly not possible.

The Merchant will receive a pay off or balance letter and nothing will happen. No payoff is made. BUT when the time comes for a renewal or add on- the Merchant does not qualify because they are "stacked" within the first 3 months of obtaining a first position. When the Merchant learns of the actual rules- it is too late and receivables are already tied into advances and thus, they need another stacked advance to get by.

But agreed. If any document is requested, it would hurt the company more by not complying with the request both on the consumer and Broker side.