To become a successful ISO shop funding $10-$20 million per month and doing it legitimately without stealing or breaking the law is not easy. Many of my clients are doing this today by using hard work, ethics, and continually working on their skill sets. When I was a stockbroker, the process was simple. First call client up, get him to agree to purchase a stock, send him a confirmation, and then purchase the stock for him. With MCA there are many different variables that going to closing a deal. Here are a few of the obstacles that many hard-working ISO teams we speak with our dealing with today.
Back Doors–Corrupt Funders
I spoke with one ISO team last week and he told me it does not matter who you submit to from a paper lender down to a d paper lender, even the most reputable companies now have leaks. A broker I met last year told me that he pays his friends to work at top-tier lending companies, significant money above the regular salary to steal daily submissions on his behalf. This is something that I never had to deal with in a stockbroker in business.
TCPA Litigators
Litigators are popping up now and becoming as aggressive as ever. Understand, every time you text or call someone on the DNC list especially if they were known litigator it can cost you $1500 per call. There are many brokers that don’t want to invest in quality data that is being clean by the lead provider or services where they can clean the date of themselves. This is a disaster waiting to happen. In addition, there are many new lead brokers popping up on the Daily Funder to take advantage of the gold rush in MCA. These lead brokers are not cleaning their data and are putting ISO teams in jeopardy for lawsuits totaling tens of thousands of dollars and potentially being put on a business. When you see an ISO change their name after being in business for years it’s usually the result of a TCP a lawsuit that is so big it’s not your company and brand out of business.
Debt Settlement
I got a call a few weeks ago from someone who opened a debt settlement company. This person was a former client of mine that had an MCA iso and Funding company. I had not heard from him in sometime and he told me that he is now in the debt settlement which he referred to as a much more honest business than MCA. I asked him how talking people out of paying agreed-upon advances was an honest business, and he really did not have an answer for me, so I decided to end the conversation and wish him the best
Leads
There are many lead brokers as I mentioned popping up to take advantage of the growth in MCA. Most brokers in the market. our selling only full packages. As I ’have mentioned before my company does not sell full packages. It’s a choice that I have made. if you are using full packages to build your business that is your choice. Understand there are two types of full packages. One where you have a direct contact with the lender that is giving you his turn downs that may not fit in his box but are still refundable merchants. The other full package comes from the broker sometimes US-based often offshore lead brokers who are gaining access to low level packages that are not fundable and sell them hundreds of times over and over As many of my clients tell me it’s a race to the bottom/ Finding a way to originate your own deals by purchasing real time or age leads, calling texting and emailing building a pipeline and closing deals legitimately is the road to funding $20 million a month ISO. Trafficking Social Security numbers and bank statements is a short-term answer to a long-term problem
Have a great week