3 Steps ISOs Can Take to Prevent Backdooring
Have your deals ever been stolen out from under you? According to deBanked, backdooring is "the practice of stealing a deal and cheating the original ISO or broker out of the commission."
Ouch. We know it stings when your "partner" steals your deals. It's never fun being deceived or taken advantage of – especially by someone who's supposed to be on your side. That's why we've compiled these 3 actionable steps YOU can take to prevent backdooring:
1. Ask funders what measures THEY have in place to prevent backdooring.
Not all funders are created equal. Some funders are highly ethical and lean on softwares and best practice guidelines to keep them honest. Other funders put no thought or effort into protecting their partners' deals. Elevate operates as a true direct funder, meaning we do not try to monetize on the declined submissions sent to us. Those submissions belong to the submitting partner, and we do not sell this information or send it out to other funders.
2. READ the ISO agreement.
Before signing on with a funder, you should always read the ISO agreement in full. It's important that you understand every part of the agreement and what you're signing up for. Not sure about something on the agreement? Ask the funder. Something doesn't sit right with you? Let the funder know. With the right funder, the agreement should be a collaborative process.
3. Do not submit deals to funders with whom you do not have a signed agreement.
To put it simply, if you don't have a signed agreement with a funder, you shouldn't submit any deals to them. There is nothing stopping that funder from shopping out your deal and stealing your commission – after all, without an agreement, they have no allegiance to you or your company.
At Elevate Funding, transparency and honesty are at the core of what we do. We succeed when our partners succeed, and we strive to be an honest and considerate funding partner at all times, in all scenarios.
If you are interested in partnership and wish to speak to someone now, please call us at 888-382-3945 or click here to send us an inquiry. One of our teammates will get back to you as soon as they are available.