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  1. #1
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    Funders, what makes ISO's great?

    I'll start with honesty. I love when an ISO is honest about a competing offer or with what the merchant is actually looking for. I hate when we bump to what the ISO claims a merchant wants but they really just wanted more commission and the merchant actually wanted a longer term or shorter daily etc....

    what else?!

  2. #2
    I would say not having 100 funders they submit to, I think if some ISO's sit with just a few funders in each box they would be a lot better off.

  3. #3
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    Quote Originally Posted by rcapella View Post
    I would say not having 100 funders they submit to, I think if some ISO's sit with just a few funders in each box they would be a lot better off.
    hashtag facts.

  4. #4
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    funders want a few simple things from their iso's.

    Submissions with statements labeled correctly, quality paper that fits their box, any information about the file in the body of the email, (Positions, balances, etc.) Good communication and some files crossing the finish line.

    Nothing worse than an iso that submits a deal with "j1hb23ghj123" labeled on the statements, no information and "GET ME MAX" when the guys looking for 50k doing 6k each month...cmon.
    Thank you,

    Lior Monus
    Business Development Manager
    CFG Merchant Solutions


    Direct: (646) 880-6764
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  5. #5
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    Funders want funding volume. Any other answers is just what will be nice to have. Any iso with serious volume can be a total dick.

    Lior honestly would you be happy with an iso that submits a deal with "j1hb23ghj123" labeled on the statements, no information and "GET ME MAX" but funds 3 million a month with you

  6. #6
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    Quote Originally Posted by RickyR3712 View Post
    Funders want funding volume. Any other answers is just what will be nice to have. Any iso with serious volume can be a total dick.

    Lior honestly would you be happy with an iso that submits a deal with "j1hb23ghj123" labeled on the statements, no information and "GET ME MAX" but funds 3 million a month with you
    9/10 times the ones that do that type of Volume know how to properly submit a deal. If they submit deals that way but fund and perform, I don't care how sloppy the submission is.
    Thank you,

    Lior Monus
    Business Development Manager
    CFG Merchant Solutions


    Direct: (646) 880-6764
    Cell: (516) 319-5826
    Fax: (646) 278-7322
    Lmonus@cfgms.com
    180 Maiden Lane New York, NY 10038

    www.cfgmerchantsolutions.com

  7. #7
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    yeah im ok with an ISO being a dick or being themselves or whatever it is but usually the ISO's who don't care to send a proper submission dont fund anything with us

  8. #8
    Senior Member Reputation points: 51397 DTFdowntofund's Avatar
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    Understanding the box. ie, I do B-C paper, 250k max approval, 10 month max term, buy rates 1.29 - 1.33.

    • don't send me A paper with an 800 fico and expect me to compete with IOU.

    • don't submit a deal where the last 3 positions were 1.499 40 day terms and think I'd entertain it

    • don't flood my underwriting with loads of deal flow and never fund (we know you use them as a catalyst for completing offers elsewhere)

    • don't have 61 of your reps calling me asking questions on every single deal they've ever sent.. designate someone to follow up on statuses if needed in a pipeline request

    • don't expect to be prioritized on the 2 subs you send me a month
    (I respect every single partner I've ever had, and happy to assist... but it's not a secret that if you focus on building a strong relationship with 1-2 funders in each product space you're always better off than spreading out a handful of deals to them all and never really building rapport with a few specifically)

    • don't call and request an increased approval amount and longer term on every single deal you send. (it's smart to try and get the most out of deals from a broker's perspective... of course. but learn how to pick and choose your battles here; if you fund 20 deals a month with me and on 2 of them you reach out and explain why you want an offer bumped and it makes sense to do so... you'll get a much better response, guaranteed)

    • don't send me deals with 15 NSFs.

    • don't quietly usher in problematic files and attempt to try and get away with omitting there's an issue with it from the jump. It's going to come to light, and there's only a few strikes you get there before you're going to have a negative connotation to you from then on.

    • don't call me and start playing the blame game if your deal dies in the 25th hour over something that is rational (ie, decision logic shows -$47,000.00 in their primary acct) Listen, I get your frustrated.. I really do, but your best course of action is to figure out how to rectify the issue, fix it, and help it come to fruition.

    Knowing how to allocate your deals properly is not only going to establish credibility with the funder, but it's going to result in the best terms and ergot the most funded deals possible... which is why we all play this game to begin with.

  9. #9
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    ^ str8 up facts.

  10. #10
    Senior Member Reputation points: 51397 DTFdowntofund's Avatar
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    Quote Originally Posted by RickyR3712 View Post
    Funders want funding volume. Any other answers is just what will be nice to have. Any iso with serious volume can be a total dick.

    Lior honestly would you be happy with an iso that submits a deal with "j1hb23ghj123" labeled on the statements, no information and "GET ME MAX" but funds 3 million a month with you
    Personally, I couldn't care less what the docs are labeled, as long as they're relevant.. and I underwrite.

    What irks me in that respect is when reps don't bother looking through the items prior to putting a sub together. I've seen countless instances where it's a printout, or excel / word format sent in where a MTD is needed for example,.. or if the merch printed and scanned their banks and it was not copied properly (cut off margins, illegible, or front and back with half missing). If we requested payback months and I get 2 Septembers, an April and half a May and they're not even all the same account. Really gets me hot. lol

  11. #11
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    Quote Originally Posted by DTFdowntofund View Post
    Understanding the box. ie, I do B-C paper, 250k max approval, 10 month max term, buy rates 1.29 - 1.33.

    • don't send me A paper with an 800 fico and expect me to compete with IOU.

    • don't submit a deal where the last 3 positions were 1.499 40 day terms and think I'd entertain it

    • don't flood my underwriting with loads of deal flow and never fund (we know you use them as a catalyst for completing offers elsewhere)

    • don't have 61 of your reps calling me asking questions on every single deal they've ever sent.. designate someone to follow up on statuses if needed in a pipeline request

    • don't expect to be prioritized on the 2 subs you send me a month
    (I respect every single partner I've ever had, and happy to assist... but it's not a secret that if you focus on building a strong relationship with 1-2 funders in each product space you're always better off than spreading out a handful of deals to them all and never really building rapport with a few specifically)

    • don't call and request an increased approval amount and longer term on every single deal you send. (it's smart to try and get the most out of deals from a broker's perspective... of course. but learn how to pick and choose your battles here; if you fund 20 deals a month with me and on 2 of them you reach out and explain why you want an offer bumped and it makes sense to do so... you'll get a much better response, guaranteed)

    • don't send me deals with 15 NSFs.

    • don't quietly usher in problematic files and attempt to try and get away with omitting there's an issue with it from the jump. It's going to come to light, and there's only a few strikes you get there before you're going to have a negative connotation to you from then on.

    • don't call me and start playing the blame game if your deal dies in the 25th hour over something that is rational (ie, decision logic shows -$47,000.00 in their primary acct) Listen, I get your frustrated.. I really do, but your best course of action is to figure out how to rectify the issue, fix it, and help it come to fruition.

    Knowing how to allocate your deals properly is not only going to establish credibility with the funder, but it's going to result in the best terms and ergot the most funded deals possible... which is why we all play this game to begin with.
    Well said !

  12. #12
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    Max is my dog !!!!!
    Jake Strelzik
    305- 785-2548

  13. #13
    Quote Originally Posted by DTFdowntofund View Post
    Understanding the box. ie, I do B-C paper, 250k max approval, 10 month max term, buy rates 1.29 - 1.33.

    • don't send me A paper with an 800 fico and expect me to compete with IOU.

    • don't submit a deal where the last 3 positions were 1.499 40 day terms and think I'd entertain it

    • don't flood my underwriting with loads of deal flow and never fund (we know you use them as a catalyst for completing offers elsewhere)

    • don't have 61 of your reps calling me asking questions on every single deal they've ever sent.. designate someone to follow up on statuses if needed in a pipeline request

    • don't expect to be prioritized on the 2 subs you send me a month
    (I respect every single partner I've ever had, and happy to assist... but it's not a secret that if you focus on building a strong relationship with 1-2 funders in each product space you're always better off than spreading out a handful of deals to them all and never really building rapport with a few specifically)

    • don't call and request an increased approval amount and longer term on every single deal you send. (it's smart to try and get the most out of deals from a broker's perspective... of course. but learn how to pick and choose your battles here; if you fund 20 deals a month with me and on 2 of them you reach out and explain why you want an offer bumped and it makes sense to do so... you'll get a much better response, guaranteed)

    • don't send me deals with 15 NSFs.

    • don't quietly usher in problematic files and attempt to try and get away with omitting there's an issue with it from the jump. It's going to come to light, and there's only a few strikes you get there before you're going to have a negative connotation to you from then on.

    • don't call me and start playing the blame game if your deal dies in the 25th hour over something that is rational (ie, decision logic shows -$47,000.00 in their primary acct) Listen, I get your frustrated.. I really do, but your best course of action is to figure out how to rectify the issue, fix it, and help it come to fruition.

    Knowing how to allocate your deals properly is not only going to establish credibility with the funder, but it's going to result in the best terms and ergot the most funded deals possible... which is why we all play this game to begin with.

    Well said

  14. #14
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    Quote Originally Posted by Lmonus View Post
    Nothing worse than an iso that submits a deal with "j1hb23ghj123" labeled on the statements, no information and "GET ME MAX" when the guys looking for 50k doing 6k each month...cmon.
    I couldn't agree more with the labeling of those kind of statements. Going back and forth trying to figure out what month is what makes the process take longer.

    I also agree with everything DownToFund has said especially the having all of your reps call me for an update on every single deal 5 mins after they submit it. Very annoying.

    Also like to add, which has happened a few times.

    -Don't CC all of your lenders in a submission especially when you meant to BCC. LOL.

  15. #15
    Senior Member Reputation points: 51397 DTFdowntofund's Avatar
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    Quote Originally Posted by Fetachini View Post
    I couldn't agree more with the labeling of those kind of statements. Going back and forth trying to figure out what month is what makes the process take longer.

    I also agree with everything DownToFund has said especially the having all of your reps call me for an update on every single deal 5 mins after they submit it. Very annoying.

    Also like to add, which has happened a few times.

    -Don't CC all of your lenders in a submission especially when you meant to BCC. LOL.
    Interesting. The mislabel never really irked me. Open a PDF, you see its Chase acct ending #3341 for April, and 2 seconds later just close the tab and rename Apr 3341. But to each his own, everyone is different and there really isn't a right or wrong answer here, it just boils down to personal preference.

    To piggyback on this, I get pretty snarky when I get either dropbox links, or merchant login info as opposed to attached docs. To me, this pretty much translates to:

    "hey.. here's a deal. Go fetch the statements and everything you need, then process and then pay me thanks".

    If I'm doing your job for you I'll be taking the compensation too. I am not your secretary. Either do your job or take it elsewhere.

  16. #16
    ISO's that don't charge PSF's on top of being paid 12+ points. Stop being greedy. You're screwing up the renewal for everyone.

    I also hate ISO's that never respond during underwriting when I request a MTD or have a general inquiry about the business.

  17. #17
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    ISO's that don't charge PSF's on top of being paid 12+ points. Stop being greedy. You're screwing up the renewal for everyone.
    on that topic , can you explain to me why funders have to charge a psf fee or whatever they want to call it. Term ,rate i get they do based on how risky the feel it is but than why add 5-10% in fees on top on that?

  18. #18
    Quote Originally Posted by Michael I View Post
    on that topic , can you explain to me why funders have to charge a psf fee or whatever they want to call it. Term ,rate i get they do based on how risky the feel it is but than why add 5-10% in fees on top on that?
    Origination fees are standard for 99% of funders, so it wouldn't make sense to be the only one not charging one. Most "good" ISO Shops that don't suck and submit trash don't charge PSF's.

  19. #19
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    Origination fees are standard for 99% of funders, so it wouldn't make sense to be the only one not charging one. Most "good" ISO Shops that don't suck and submit trash don't charge PSF's.
    I agree that most funders charge an origination fee but i don't agree that the reason is because "why not charge if everyone else is charging".

    The O / UW Fee is for funders to cover some of their upfront costs and to possibly cover some of the broker's upfront commission.
    Brokers make an upfront risk free commission, while day one the funder is in the hole the funding amount + the commision.

  20. #20
    Quote Originally Posted by Akanner View Post
    I agree that most funders charge an origination fee but i don't agree that the reason is because "why not charge if everyone else is charging".

    The O / UW Fee is for funders to cover some of their upfront costs and to possibly cover some of the broker's upfront commission.
    Brokers make an upfront risk free commission, while day one the funder is in the hole the funding amount + the commision.
    In a perfect world, ISO's shouldn't be paid at all until the deal pays off. None of this 30 day BS. If I'm in the hole $10k on a deal after 30 days and the merchant decides to stop payment, the broker should be entitled to nothing IMO.

  21. #21
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    In a perfect world, ISO's shouldn't be paid at all until the deal pays off. None of this 30 day BS. If I'm in the hole $10k on a deal after 30 days and the merchant decides to stop payment, the broker should be entitled to nothing IMO.
    every broker would find a new job

  22. #22
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    In a perfect world, ISO's shouldn't be paid at all until the deal pays off. None of this 30 day BS. If I'm in the hole $10k on a deal after 30 days and the merchant decides to stop payment, the broker should be entitled to nothing IMO.
    I agree to this to a certain extent.
    By doing this, brokers will be forced to work and follow up with clients to ensure they are paying. Minimizing stacking, double funding, and excessive PSFS.

    No chance it would fly in reality though

  23. #23
    Senior Member Reputation points: 51397 DTFdowntofund's Avatar
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    Quote Originally Posted by Akanner View Post
    I agree that most funders charge an origination fee but i don't agree that the reason is because "why not charge if everyone else is charging".

    The O / UW Fee is for funders to cover some of their upfront costs and to possibly cover some of the broker's upfront commission.
    Brokers make an upfront risk free commission, while day one the funder is in the hole the funding amount + the commision.
    This.

    There can be a multitude of intent when it comes to the set up fees, but to address the reality that "we all play this game to get paid", it can be understandably justified in the amount of overhead it cost the company to not only accept, process and execute the deal.. but in the event of a default, it will at the very least manage to cover cost and the rep's compensation. But at the same time, I'm sure we all know folks who really take advantage here.

  24. #24
    Quote Originally Posted by DTFdowntofund View Post
    This.

    There can be a multitude of intent when it comes to the set up fees, but to address the reality that "we all play this game to get paid", it can be understandably justified in the amount of overhead it cost the company to not only accept, process and execute the deal.. but in the event of a default, it will at the very least manage to cover cost and the rep's compensation. But at the same time, I'm sure we all know folks who really take advantage here.
    Just curious, and I mean no shade, but how do you have time to get any work done when you're commenting in depth, back and forth on seemingly every single post on here?

  25. #25
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    Quote Originally Posted by TheUnderwritingProdigy View Post
    Origination fees are standard for 99% of funders, so it wouldn't make sense to be the only one not charging one. Most "good" ISO Shops that don't suck and submit trash don't charge PSF's.
    so basically you believe that the guideline of what is called greedy is based on what is standard ?

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