Direct Funder or Not?
Reupping this blog post titled "Direct Funder or Not" that I wrote a couple of years back and just updated because it's still so relevant for MCA funders. I still come across new funders that don't want to offer up the transparency needed so that brokers can be confident in their company.
Here's a snippet:
"How should a company prove they are a direct funder
When a company that is not well-known claims they are a direct funder, there is usually a request to prove as much for any broker who might be inquiring to sign up with them.
An ISO agreement alone doesn’t prove they are a direct funder.
Read the ISO agreement carefully!"
Also:
"The following are a few ways to prove to be a direct funder:
Provide a copy of a blank contract. This will show the responsible parties involved.
Give direct links to court records for previous filings against debtors.
Provide a merchant(name blocked out) bank statement showing where a deposit for funding took place and ACH withdrawals.
If a ‘funder’ does not want to supply any of this information then you may want to reconsider signing up with that company. "
@STEVE BENJAMIN talk about calling it like it is!