Why ISOs Struggle Now More Than Ever to Secure Lending for Clients
What happens when lenders run unregulated in an industry focusing more on building payable accounts and less on working with business to ensure cash flow? Problems arise. ISOs struggle.
Merchant lending offers struggling and expanding businesses the chance to succeed. However, there are plenty of problems plaguing the industry, making it harder for ISOs to connect small businesses with the funds they need.
Problems Plaguing the ISO Market
A one size fits all approach. Our world is becoming increasingly specialized and niche. Businesses succeed because they can specifically address their clients pain points. So why would you want a lender who basis their evaluation on generalizations?
If you want to secure cashflows through MCAs and invoice factoring, you need a lender who specializes specifically in the problems facing SMEs to ensure the revenue stream is there to generate returns.
Backdooring. Relying on merchant loyalty can be one of the most disheartening and frustrating components of being an ISO. Through ignorance, desperation, or sometimes just out of spite, lenders have been known to turn down funding from one source in exchange for funding that better serves the lender, not the trusted relationship. It's so prevalent in the industry that it has evenresulted in arrests.
Client Stealing. Worse than the sneaky activities of some lenders is the frequency of client stealing in the industry. Businesses are built through growing client lists while exceeding expectations. It makes an ISOs job much harder when they have to find new clients due to theft continuously.
ISOs Being Cut Out of Commissions. ISOs face the real possibility of having their efforts wasted. Often, they put in the work to source a lender only to have some lenders undercut them, going behind their backs to lend directly to the merchant.
With each one of these major issues facing ISOs, how can you make sure that your hard work pays off? How can you make sure your lender has your best interests in mind? How you can you rely on a lender to do their best work, securing funding that builds your name in the industry, generating new leads?
Send Your Files to an Experienced Lender
You have the power to send your files to any lender you choose. Send them to someone with exceptional experience in financing and understands SMEs and the cash flow issues they face. Send them to Ironwood Finance.
Work with a Competent Lender You Can Trust
Many of the large companies seek to build massive amounts of accounts receivable only to turn them over to collections. They don't care about helping grow small businesses. They also employ massive staffs with highly individualized employees that creates several bottlenecks along the way, slowing down effectiveness. And after all, time is money.
At Ironwood Finance, we work with your files that get declined or shut out. It doesn't matter if your merchant has:
- A sub 500 credit score
- Multiple NSFs
- A history of defaulting
- Multiple MCAs currently
Our small team focuses on all aspects of lending, prospecting, underwriting, funding, and factoring. We will handle your files, work with your merchants, and make sure you earn your fees. Contact us today to find out more about working with a team of experienced lenders you can trust.
Original article by Senior Lending Officer Matt Rojas.
