You told me to check the courts. So I did.

Understanding Funding Companies and what insights you can learn from Court Checks.

We exist in a weird time where we have to check the validity of a company by checking court records. What does this even mean when you question a business development representative of a company and they say, 'We are a direct funder, check the courts!"

I want to give a shoutout to whoever first coined this—thank you 🫶 . For some, this might just confirm that you've once funded a small business. But, let's keep it simple: if there's a default, you might end up needing an attorney to take the matter to court. That's the reality.

Firstly to explain. I don't use anything fancy in my search for court filings. I simple put in google the company's name and put it in quotes. Like this: "The Confident Broker, LLC" and POOF! 😮 You will probably see the Funding Company come up on Trellis Law or Unicourt. Both are paid for sites but the first few searches are free so go on... get your search on.

I usually filter my search by date and check out how many defaults they had for the month. This tells me two things. Volume and how bad their underwriting is. 🫢

If there are documents, check the exhibits. Usually the edited contract is in there and you can see what they fund. At this point you can see understandable contracts or how insane the approval was and either and see why the Merchant had POST FUND CLARITY.

Defaults are bad. I AM NOT saying they should happen but if you don't do things the right way how do you expect to get respect? Plus some Merchants are @$$ holes about it anyway. That's another blog but anyway...

By now, you've likely validated your feelings about working that funding company (hopefully)

It's important to recognize that while many of these companies directly fund revenue-based deals and follow similar guidelines, they do not necessarily share the same business acumen or corporate culture. Each company creates its own unique environment and chooses the kind of community it wants to foster. This often results in a very distinct corporate culture, even within small circles of influence. Taking this into consideration is crucial when deciding which funding company to partner with.

I said "corporate culture" way too many times for an industry who lacks both and is just surviving but wanting to innovate and somehow self-regulate 🫠 😂

I would like to take this opportunity to provide my insight and lend (not fund) my talents out there in the ways that I do. I've come to the enlightening terms that I do not wish to be employed by anyone but myself and there is no one else to impress or disappoint.

Make sure you read the blog of how I judge Funding Companies and how you should to so YOU can be confident in who you are partnering with!

*No known Funding Companies were butt hurt in the making of this blog. Please note that all information in the ways of research and teaching are done for free through search engines and only take time and a little effort to making yourself better. The Confident Broker only works if YOU become confident and is not liable for adverse results due to not pushing yourself hard enough and not being lazy.