ISO FAQ QUESTIONS
Are you a direct lender?
No. Linktolender.com is an online marketplace. We have partnered up with a network of over 30 business finance lenders, banks, private investors, real estate investment lenders and commercial mortgage lenders to help business owners and real estate investors get the funding they need. With Linktolenders’s robust lender network, our platform can serve as a strong option for quickly zeroing in on the best lender depending on the need and the profile of the borrower. The major advantage is that our goal is maximize the approval rates for ISOs and borrowers. A common scenario is that a borrower may be denied by 4 lenders but approved by 1. If the borrower where to depend on 1 lender and get denied, they cannot obtain funding. Many experienced ISO can do this work themselves. Linktolender.com saves you time and money because lenders approve based on several factors. These are some of the factors that lenders look at: monthly volume, application flow versus closing ratios and other factors. Also, lenders change underwriting guidelines and their appetite to fund deals consistently. We consistently analyze who is funding aggressively. No worries, we can still pay up to 12 points on MCA deals. Best of all you do not have to limit yourself to just MCA deals, we offer so much more.
What are the benefits of using linktolender.com for an ISO?
Aside, from how lenders partially base their credit decisions which is volume, closing ratios, and deal flow there are other benefits. PDF applications will soon become obsolete. Lenders will have their own APIs, or many already have their own online applications. Filling out two, three or four loan applications online is time consuming. We save you money. Linktolender.com online application had to be approved by the legal departments and meet compliance requirements with the lenders we work with. You don’t have to go out and build your own proprietary technology. Also, we save you time in money in processing. Rather than updating information on a CRM, a Public or Private Drive, or your PC, all information is stored in your account. You have a built in CRM that you can view applications, outcomes, documents, and view by dates information. Also, you can keep track of applications submitted by borrowers or agents if you have teams. No need for third-party integration. Best of all currently it is FREE, no user fees for now. Also, every day we are working on product and technology development. Every quarter or every 6 months we are making new updates to linktolender.com to better serve our referral partners, borrowers, and end users.
What we expect from an ISO?
As an ISO you want to make the maximum commission available. This is the work that we expect from an ISO.
1) Submit the loan application online with initial support documents 2) Review offers 3) Make offers to the borrowers and inform of us of the offer 4) close the transaction 5) obtain documents and closing conditions or even pre-approval conditions at time 6) communicate with the borrower at all stages of the process. Linktolender.com will process and provide underwriting support under this working scenario. Also, we expect clean business and no fraud. Also, we expect a good closing ratio which is usually 20% of all submissions. We lower this to 20% because we know you can work with other lenders, and you are not exclusive to us. Out of 10 submissions at least 20% must fund, which is 2. Our goal is to increase this to 30% or 40%, that will depend on the quality of deals you submit, your closing skills and you preference in working with us or working with other lenders.
How long have you been in business?
Our parent company, KGFA Capital initiated operations in 2004 in the mortgage lending space. In 2013, it diversified into alternative business funding. Today, KGFA Capital offers an array of business solutions and acts as an alternative investment and holding company. We have 19 years in the financing and investment space. Linktolender.com initiated in 2019 and in 2020 due to credit squeeze up until 2022, loan volume was lower than other years. Today, the alternative lending and traditional lending space for businesses, real estate investors and commercial mortgages is vibrant. We project than in the next 5 years, the industry will bloom again. We are very bullish on the market conditions.
What programs do you offer?
We offer a variety of programs to include daily merchant cash advances, weekly merchant cash advances, ERTC advances, weekly payment business lines of credit, interest only lines of credit, monthly payment business loans, SBA7a loans, equipment financing, equipment leasing, invoice financing, commercial real estate loans, investment property loans and more. Our platform analyzes the borrower’s profile and need and determines the best options. While MCA pays the highest, sometimes you may lose a deal because the business borrower is looking for a better term or something that address their needs such as an SBA 7a, an equipment finance loan with a monthly payment or another solution. Rather than losing the client you can preserve the client and still make money.
How long does it take to get a credit decision?
On merchant cash advances, equipment financing, equipment leasing, SBA7a we can deliver a credit decision the same day of submitting the application. Worst case scenario would be 48 hours from submitting the application. Sometimes aside from our proprietary algorithm review and APIs with our network of lender, it may require a manual or human review. On programs that require more documents such as invoice financing, commercial real estate, and investment property loans, it may take 3 to 5 business days to deliver a credit decision. Keep in mind that a credit decision is a conditional approval or a denial. A conditional approval means that based on the information provided the applicant has been conditionally approved subject to accepting the offer, validating certain information and a final review before funding.
Does your platform affect the borrowers credit score since you are a marketplace?
In most cases No. Our network of lenders will perform a soft pull or utilize credit score modelling to avoid hard pulls. Hard pulls may only be required if we exhaust most options or on larger deals prior to funding. 90% of the time a soft pull will be performed.
Do you perform a decision logic or bank verification on transactions?
Not on all programs. In some programs we may require a decision logic with decisionlogic.com or a share screen verification.
How do we receive credit offers?
Since the application may be reviewed by up to 4 to 5 different lenders, we will deliver a credit decision via email.
How will I know the outcome of the deal?
Two ways. First, you will receive an email. Second, there are updates made on the portal daily and weekly.
When do you pay commissions?
This depends on the program. The agreement specifies the day we pay commission. Usually, we pay commissions weekly on MCA Advances and on other programs it may be up to 7 days after funding and others monthly. Your agreement specifies the payment frequency based on the type of program.
How much commissions do you pay?
On Merchant Cash Advances we can pay up to 12% commission. This depends on the borrower’s tolerance level to accept the final rate. While wanting to make 8%, 9%, 12% on a transaction is appealing to an ISO, this is not the case every time. First, business owners have become smarter and understand these types of loans. Many borrowers are looking for the lowest rate, which many cannot obtain for several factors. Also, the market is competitive. Eventually, another ISO will convince the borrower to provide their documents and there are ISOs who will tell them they got ripped off. They will do the deal for less money. The beauty about the MCA loan business is on renewals. If you treat your client well, 50% or more will renew with you. Charging excessive amounts is placing the renewal book of business at risk for you. On other programs, we pay less such as Interest only business lines of credit, monthly payment loans and SBA loans. These loans have longer terms and lower rates. Lower rates are what the borrowers want and this means making less money for an ISO. However, if a borrower can obtain a monthly payment loan with a 5-year repayment term as opposed to a 6-month MCA advance, the borrower will take the monthly payment loan any day. Rather than loosing the client, it is in your best interest to make something as opposed to nothing and loosing the client to another ISO who is willing to give them a monthly payment loan. The agreement specifies the points you can make on each type of program.
Please see agreement:
What do I need to do to sign up?
It’s simple, you create your account online on our platform at linktolender.com. Once you create your account, we will send you the compensation agreement. Thereafter, you are ready to start submitting deals.>
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