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Sean Murray: That they think it
would be a good idea to have

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some type of uniform standard
agreement that all brokers would

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have access to. Because what
happens normally is that the

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funder or lender is the one in
charge of presenting the

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contract this isn't like, they
each present their own contract,

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and they go back and forth. And
they, you know, they chew the

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deal somewhere in the middle. If
a broker wants to sign up with a

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funder or a lender, they
basically say, okay, I'd love to

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sign up, send me the contract,
the funder or lender naturally

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is going to present something
that's in their favor, right?

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That's just how any contract
negotiation or conversation

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starts, oftentimes an
expectation that you have a size

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and a say, it's mostly good, but
I want to change these parts.

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And that kind of kicks off the
negotiating process and the

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finalizing of a deal happens all
the time with basically

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anything. And I guess what,
what, Jared, from United Capital

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Source is saying, is that what
he's finding that he's making

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his own suggestions like, hey,
my legal counsel wants to change

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these things. And the other
side, the funder or lenders are

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like, what do you mean? Like,
what do you mean, you want to

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change it? That's what he's
that's what he's telling us.

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Yeah. And so it seems like his
solution is to kind of avoid

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this type of process, because
not everyone is going to have

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access to good legal
representation. I guess, like

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he's one of the larger he owns
one of the larger brokerages in

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the in the country. And there
are a lot of a lot of those out

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there who are a lot smaller or
independently operated just a

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one man, a two man show. And
they may not they may not have a

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lawyer at all, who can even help
them negotiate. It's kind of

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like they get a contract they're
looking at and like, you know, I

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don't really know, legalese. I
guess I have to sign it because

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I don't have anyone in my
corner. And I think what he's

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trying to do, might take away
from, from what he told us is

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that he's kind of advocating on
all the brokers behalf saying,

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let's come up with something
standard, that the other broker

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can present that the funder and
lenders already respect and also

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understand. Yeah. That makes the
the the the relationship more

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balanced and more fair. So
that's his way of relieving the

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tension that exists between the
parties that that was my

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takeaway from it.

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Johny Fernandez: But let me ask
you this for the tension in

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regards to those two parties, I
mean, at the end of the day,

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it's like you said the agreement
is for everyone to get

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protected. And for essential,
I'm assuming I've never had to

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be in this scenario, but it's to
see who can make the most money,

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you know, have everything on
paper written. Everyone knows

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where everyone stands. Would any
of these actually ever? Do you

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think that something like this
would work? Like having a

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standard agreement? Do you think
that this is something that can

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be traced, and people could
follow something like this?

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Sean Murray: You know, I don't
personally know if it could work

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or if it will work. I think that
what he's talking about, though,

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is a good opportunity to at
least bring awareness to the

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dynamic that exists out there. I
think he probably opened up a

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lot of small company's eyes to
the fact that their ISO

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agreements might be one sided.
Yeah. And that, according to

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Jared, that you may not find
out. It's one sided until things

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go downhill. Right? You might be
saying.

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Johny Fernandez: That'susually
with anything like everything's

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great. But then something goes
downhill and and everyone's

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like, hey, the contract, it's
like, it says it right here.

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Yeah. Article Two. Exactly. You
can't leave.

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Sean Murray: That's his. That's
his whole point is that

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everything seems great. And
you're out there being like, you

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know, this hasn't really been a
problem for me. And it's

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probably because you've never
been in an adverse situation

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where the both parties have no
choice, but to kind of look at

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what are the what are the
contracts say we can do here?

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Yeah. Especially if you're a
funder or lending company, you

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have to understand, even if you
have a good relationship with

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the owner of the funding or
lending company, you're like,

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hey, we're good friends, right?
Our families know each other.

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Yeah. I know what the contract
says it's in their favor. But

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we're, you know, like, they know
me, I know them. It's all cool,

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right? Even if things get bad,
they'll understand. I think what

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some people might not realize is
that if that lender or funder

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raised money from investors, and
that they're deploying capital

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that's not necessarily theirs,
but from other people, third

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parties, that they're the ones
that are going to be dictating

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what the funder lender does when
things get bad so that person,

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you have a good relationship
with that, no, that's your

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buddy, your friend, whatever,
you know, your your families

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know each other. It's not going
to matter because they're going

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to have someone breathing down
their neck say saying, hey, you

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know, it's a pandemic, or it's a
recession or it's an emergency.

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And I don't care if you're
friends with them, I want to get

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paid my money, you're gonna have
to enforce this clause of the

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contract that, you know,
basically takes advantage of the

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person that you say you're good
friends with. I don't care and

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if you don't do what I say, I'm
going to sue you for not

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enforcing it. That person's, you
know, their back is up against

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the wall. Yeah. And that's what
a lot of people don't seem to

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realize this is according is
according to like, this is what

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I gather from what Jared was
saying. He's talking about

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things like, you know, family
dinners and stuff, and like,

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everything's, everything's all
friends. And then one day you

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find out, things are not going
well. And they're like, I had no

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choice.

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Johny Fernandez: Yeah, yeah,
well, it's good. I think we've

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seen a lot here that it's like,
oh, look, I know, someone like

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my friend or whatever. And I
think the hardest transaction to

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do is always with friends.
Unfortunately, I choose not to

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work with friends. Okay. Like,
perfect. Like, I try my best to

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avoid it. Or if a friend
approaches me about a

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transaction, we're going to go
ahead, and I'm going to refer

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them to one of my colleagues.
Okay. Just to not sour things,

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because I've worked with two
friends and it went south.

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It did?

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It, did.

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Sean Murray: Did it affect your
friendship?

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Johny Fernandez: A little bit.
But we're good, we're in good

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terms. But when you're dealing
with money, when you're dealing

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with personal things, you know,
business contracts. Those

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agreements, like, everyone's
everyone wants to get protected.

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Everyone wants to make sure they
get the most money. And some

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friendships are just not meant
to be transitioned into like a

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business. partnership deals.
Okay. And I learned that very

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early on it. I'd rather just
like, hey, if you want to work

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with me, I can refer you to my
colleague, you guys can work

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together. I trust my colleague,
they have no personal

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relationship. And I can see this
person for holiday dinners.

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Sean Murray: Alright, that's
good advice too.

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Johny Fernandez: Yeah, please
follow that. So that's funny.

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But I think it's interesting. I
think the ISO agreements is

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definitely interesting, because
at the end of the day, these two

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parties need each other.
Regardless.

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Sean Murray: They need each
other. But there they seem to

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be, you know, at odds with each
other. And part of what Jared

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was saying, I think the reason
why he was willing to speak to

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us at this particular point in
time, there has always been

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this, like tension between the
parties. Is that, according to

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him is that there's some new
laws that are one, that the the

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fact that there's new laws are
coming out is not just according

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to him, everyone knows new laws
coming out in California, and in

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New York, regarding disclosures
and commercial finance

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transactions. Everyone knows
that. Yeah. But according to

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what Jared was telling us, is
that that's causing some of

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these parties, the funders and
lenders to introduce new ISO

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agreements, and those ISO
agreements, supposedly are there

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to protect them, and help them
comply with the laws. Yeah. But

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at the same time, are putting
them even more at odds with the

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brokers than before. And he's
saying that he has had, I think

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he said he's had to end some
relationships, because of this,

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or whatever. And, you know, if
everything was working good, and

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even if things worked out, okay,
and hard times before, the fact

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that new laws are coming into
play, some that are, are pretty

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restrictive, as to what all the
parties can do. And then the

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lenders and funders are saying,
well, we have no choice, we need

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the right to do this, we need
the right to do that, you know,

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we have to control this.
Otherwise, we're exposed

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legally. So we have to make our
contract insanely one sided, or

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we have to do this, you know
that that hurts hurts you, it

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works against you, because we
have no choice but the broker,

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they can either sit there and
accept it, and potentially put

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them their whole portfolio
future portfolio at risk, or I

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guess the proposal is, well, you
know, let's, let's take a step

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back, let's meet somewhere in
the middle, and come up with

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some type of alignments, maybe
perhaps some type of uniform

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agreement that will satisfy
everyone as we as we evolve into

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this new era of, of commercial
finance.

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Johny Fernandez: Yeah. So it'll
be interesting to see next year

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when certain laws go into place.
How this really ends up

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affecting us living in it now
it's on paper and you know,

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things are coming, things are
coming these new changes, but,

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you know, when we're actually
living in it, I'm interested to

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see how this will truly affect
us. So well, not us, but you

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know.

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Sean Murray: The industry.

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Johny Fernandez: The industry.