Referrals, partners and repeat business

Bought leads cost money every month. A merchant you funded well, a partner who trusts you, and a renewal you planned for cost almost nothing to acquire and close at much higher rates. Shops that last tend to get a growing share of their deals from these three sources.

The best time to ask is when the merchant is happy: right after funding, or when the money has done what it was meant to do. Be specific about who you can help, and make it easy.

• "Glad the new truck is on the road. Do you know other contractors who've had trouble getting financing from their bank? I'd be happy to talk to them, no obligation."
• Give them your direct number or a link they can forward.
• Thank them when a referral comes in, whether or not it funds.

If you pay referral fees, follow the rules in your state and the funder's ISO agreement, and tell the referred merchant if someone is being paid for the introduction.

Put every partner arrangement in writing: what you pay, when, on what basis, and who owns the merchant relationship afterward. A referral partner who is paid late or wrongly stops referring.

• Sub-ISOA sub-ISO is a smaller broker or agent that sends deals through a larger ISO instead of contracting with funders directly, and splits the commission.
• Commission splitA commission split divides the commission a funder pays on a deal between the house, the closer and any sub-ISO or referral partner, by agreed percentages.

A merchant who took an advance and is paying it down well is your best prospect. Many funders will consider a renewal once the merchant has paid back a set share of the balance, commonly around 40% to 60%, depending on the funder.

percent paid = amount remitted / total payback
example: $33,000 / $66,000 = 50%

• Track each funded deal's percent paid so you know when it approaches the funder's threshold.
• Call before the merchant goes looking. If a competitor reaches them first with a new position, you lose the renewal and the merchant gains another payment.
• Be honest about what a renewal means: the new advance pays off the remaining balance first, so the net cash is lower than the headline amount.
• Only suggest a renewal when it helps the merchant. A merchant who does not need more money should not be talked into it.

• RenewalA renewal is a new advance to a merchant who has paid down an existing one. It pays off the remaining balance, and eligibility usually starts at 40 to 60% paid in.
• Paid-in percentagePaid-in percentage is how much of an advance's payback a merchant has remitted so far. Funders use it to decide when a merchant can renew.

In Ferrylend, referral and lender-referral are lead source types, so the Lead source ROI report shows what referrals produce next to paid sources. Commission splits with reps and partners are tracked in commission tracking. Funded deals show percent paid, and the Renewals page under Funded lists merchants approaching their funder's renewal threshold so you can call at the right time. See renewals and the Renewals help article.