The genesis of our business was to improve the customer experience by creating a something to hold Independent Sales Organizations accountable. We noticed something missing in the process of trying to improve business practices of ISOs. Part of that is addressed in the Small Business Borrowers' Bill of Rights, which was created by the
Responsible Business Lending Coalition 'to promote responsible practices and combat abusive practices in small business lending.' This was 'a cross-sector consensus on the rights that small business owners deserve and what lenders and brokers can do to uphold those rights.' Given the alignment with our mission, we are proud to announce that we are endorsers of the Small Business Borrowers' Bill of Rights,
There is so much that has to be accomplished for the business practices to be to the standard we would all expect if we were a merchant applying for financing. The important work of the RBLC and others has done much to influence business practices.
With that said, as the industry grows there is more work to do for all stakeholders as ISOs and brokers adjust and find new ways to take advantage of bother merchants and lenders. We can do our part without having the government pass laws or even in conjunction with expected regulation in the long term.
The following is section #4 of the SBBOR addressing Brokers:
"4. The Right to Fair Treatment from Brokers
You have a right to transparency, honesty, and impartiality in all your interactions with brokers. In order
to protect your Right to Fair Treatment from Brokers, brokers must offer:
• Transparent Loan Options – Disclose all loan options for which the borrower qualifies through the
broker’s services, emphasizing the lowest APR option, and disclose all lenders to which the broker
sends loan applications on the borrower’s behalf.
• Transparent Broker Fees – Disclose all compensation paid to the broker, and all charges that will
be paid directly or indirectly by the borrower, whether paid up front or financed in the loan.
• Transparent Results – Post clearly and prominently on the broker’s website the anonymous and
aggregated results of borrowers who obtain financing through the brokers’ services, in terms of APR
and financing product.
• Empower Borrowers to Make Informed Financing Decisions – Educate the borrower on each
loan option and ensure that the borrower reasonably understands the cost and terms as well as the
pros and cons of financing decisions before they sign a loan document. Brokers should use tools that
help the potential borrower comparison shop, including APRs and loan calculators.
• Disclosure of Conflicts of Interest – Disclose any conflicts of interest, the broker’s fee structure, and
any financial incentives they have, including whether the broker receives higher fees for brokering
certain loans. Brokers who are paid higher fees with certain lenders, loan types, or terms other than
the size of the loan, may not state they are acting in the best interest of the potential borrower.
• No Fees for Failure – No fees can be charged to the potential borrower if the broker is unable to
find them a loan and if the borrower does not accept a loan secured through the broker's services.
• Responsive Complaint Management – If a complaint is submitted, provide a confirmation of
receipt within five days and in writing, when possible, and research and resolve the complaint in a timely manner."
