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P. 38
CompanyProfi leProfi le
Company
Saying yes to portfolio, residual stream sellersaying yes to portfolio, residual stream sellers
S
Accor
According to Shomo, building relationships with an ISO's ding to Shomo, building relationships with an ISO's
support staf
support staff is critical to establishing trust, as is doing f is critical to establishing trust, as is doing
e
everything with a sense of urgency. "We can't be high verything with a sense of urgency. "We can't be high
maintenance and ex
maintenance and expect them to want to work with us," pect them to want to work with us,"
s
she said. "We want to be a 'partner with the ISO,' so they he said. "We want to be a 'partner with the ISO,' so they
ar
are assured that they are referring their agent to a trusted e assured that they are referring their agent to a trusted
sour
source for working capital."ce for working capital."
ISO
ISO/MLS contact:/MLS contact:
Denise
Denise ShomoShomo One aspect sellers can determine is their level of ne aspect sellers can determine is their level of
O
Chief Operatin participation with merchants during the process. "Since articipation with merchants during the process. "Since
Chief Operating Officerg Officer
p
4 484-638-680484-638-6804 most purchases include an attrition guarantee followed by chases include an attrition guarantee followed by
most pur
denises@cutterfinancial.comenises@cutterfinancial.com payments to the seller at milestones based on performance, ayments to the seller at milestones based on performance,
d
p
www.cutterfinancial.comww.cutterfinancial.com
w we offer the seller an option for how much they want to fer the seller an option for how much they want to
we of
be involved with the merchants after closing," Shomo
be involved with the merchants after closing," Shomo
said, noting that Cutter can offer minimum support or g that Cutter can offer minimum support or
said, notin
mana
manage merchants upfront, so ISOs and MLSs can focus ge merchants upfront, so ISOs and MLSs can focus
C began purchasing residual streams in 2006, when egan purchasing residual streams in 2006, when on generating new sales.generating new sales.
u
utter LLC founder and President David Daily tter LLC founder and President David Daily
on
b
h
he perceived a growing need for alternative e perceived a growing need for alternative
Because sellers have differing needs and objectives, Cutter have differing needs and objectives, Cutter
Because sellers
C financing resources to help build ISO and mer-financing resources to help build ISO and mer-
p
chant level salesperson (MLS) businesses. Combining ant level salesperson (MLS) businesses. Combining
ch provides flexible options for structuring payments to rovides flexible options for structuring payments to
sellers as well. One exam
his payments industry knowledge with asset-valuation is payments industry knowledge with asset-valuation sellers as well. One example is the partial residual purchase ple is the partial residual purchase
h
as o
e as opposed to a full sale. "The multiple paid is based on a pposed to a full sale. "The multiple paid is based on a
expertise he had gained in the mergers and acquisitions xpertise he had gained in the mergers and acquisitions
p
sp percentage of the residual stream up to 75 percent," Shomo ercentage of the residual stream up to 75 percent," Shomo
sphere, Daily initially focused on acquiring portfolios here, Daily initially focused on acquiring portfolios
said. "T
wit
with less than $5,000 in monthly residuals. h less than $5,000 in monthly residuals. said. "The seller receives a monthly residual on the portion he seller receives a monthly residual on the portion
t that is over the purchased amount. This scenario allows hat is over the purchased amount. This scenario allows
t
Since t the seller to receive a cash infusion and continue to collect he seller to receive a cash infusion and continue to collect
Since then, Cutter has broadened its scope by tackling hen, Cutter has broadened its scope by tackling
a residual stream." esidual stream."
lar
larger acquisitions and targeting areas of emerging growth. ger acquisitions and targeting areas of emerging growth. a r
"
"We have expanded our acquisition footprint to include We have expanded our acquisition footprint to include
residuals from all types of electronic payments," Daily esiduals from all types of electronic payments," Daily New funding programsg programs
r
New fundin
said. "W
said. "While most deals are still from credit card portfolios, hile most deals are still from credit card portfolios,
we ar In December 2012, Cutter appointed Mark Wilson the n December 2012, Cutter appointed Mark Wilson the
we are seeing increased activity from gift/loyalty, ATM, e seeing increased activity from gift/loyalty, ATM,
I
ch company's Senior Vice President of Business Development. ompany's Senior Vice President of Business Development.
check and ACH portfolios." He added that most of Cutter's eck and ACH portfolios." He added that most of Cutter's
c
business comes through referrals.usiness comes through referrals.
b Tasked with engaging ISOs in the development of strategic asked with engaging ISOs in the development of strategic
T
f funding options, Wilson has introduced programs that unding options, Wilson has introduced programs that
e
enable ISOs to fund signing bonuses and buyout nable ISOs to fund signing bonuses and buyout
Flexible seller options lexible seller options
F
p
programs.rograms.
Recognizing the dedicated hard work that goes into ecognizing the dedicated hard work that goes into
R
"
b "ISOs can use these programs to their advantage as a ISOs can use these programs to their advantage as a
building merchant relationships, Cutter's selling strategies uilding merchant relationships, Cutter's selling strategies
r
ar recruiting tool and enjoy a financial benefit by being ecruiting tool and enjoy a financial benefit by being
are designed to help ensure the merchant portfolio transfer e designed to help ensure the merchant portfolio transfer
able to focus t
process is smooth. And an experienced relationship rocess is smooth. And an experienced relationship
p able to focus their marketing dollars in other areas of heir marketing dollars in other areas of
t
management team is involved to support each stage. gement team is involved to support each stage.
mana their company, since they are not funding these upfront heir company, since they are not funding these upfront
programs," Wilson said.rograms," Wilson said.
p
M
Many members of the Cutter team have been with any members of the Cutter team have been with
F
t
the company from the beginning. Following the 2006 he company from the beginning. Following the 2006 For ISOs that may have inactive agents, the company offers or ISOs that may have inactive agents, the company offers
a solution. "Cutter of
acquisition of a Pennsylvania-based ISO, Cutter retained f a Pennsylvania-based ISO, Cutter retained
acquisition o a solution. "Cutter offers buyout programs to ISOs with fers buyout programs to ISOs with
sma
a majorit smaller residual streams being paid to inactive agents so ller residual streams being paid to inactive agents so
a majority of the ISO's account services staff, including y of the ISO's account services staff, including
p
payments industry veteran Denise Shomo, who now ayments industry veteran Denise Shomo, who now t they can streamline their residual payouts," Wilson said. hey can streamline their residual payouts," Wilson said.
"Residuals are paid to one source as opposed to hundreds
manages Cutter's operations and acquisitions. As Chief "Residuals are paid to one source as opposed to hundreds
manages Cutter's operations and acquisitions. As Chief
of inactive agents. Typically, when an agent is no longer
Operating Officer, Shomo said, "We find that servicing the
Operating Officer, Shomo said, "We find that servicing the of inactive agents. Typically, when an agent is no longer
boarding accounts, their merchants are not getting the
merchants in a purchased portfolio is crucial to maximizing
merchants in a purchased portfolio is crucial to maximizing boarding accounts, their merchants are not getting the
attention or are simply ignored." Cutter can step in and fill
the portfolio performance." attention or are simply ignored." Cutter can step in and fill
the portfolio performance."
the gap, he noted.
the gap, he noted.
38
38
Company
Saying yes to portfolio, residual stream sellersaying yes to portfolio, residual stream sellers
S
Accor
According to Shomo, building relationships with an ISO's ding to Shomo, building relationships with an ISO's
support staf
support staff is critical to establishing trust, as is doing f is critical to establishing trust, as is doing
e
everything with a sense of urgency. "We can't be high verything with a sense of urgency. "We can't be high
maintenance and ex
maintenance and expect them to want to work with us," pect them to want to work with us,"
s
she said. "We want to be a 'partner with the ISO,' so they he said. "We want to be a 'partner with the ISO,' so they
ar
are assured that they are referring their agent to a trusted e assured that they are referring their agent to a trusted
sour
source for working capital."ce for working capital."
ISO
ISO/MLS contact:/MLS contact:
Denise
Denise ShomoShomo One aspect sellers can determine is their level of ne aspect sellers can determine is their level of
O
Chief Operatin participation with merchants during the process. "Since articipation with merchants during the process. "Since
Chief Operating Officerg Officer
p
4 484-638-680484-638-6804 most purchases include an attrition guarantee followed by chases include an attrition guarantee followed by
most pur
denises@cutterfinancial.comenises@cutterfinancial.com payments to the seller at milestones based on performance, ayments to the seller at milestones based on performance,
d
p
www.cutterfinancial.comww.cutterfinancial.com
w we offer the seller an option for how much they want to fer the seller an option for how much they want to
we of
be involved with the merchants after closing," Shomo
be involved with the merchants after closing," Shomo
said, noting that Cutter can offer minimum support or g that Cutter can offer minimum support or
said, notin
mana
manage merchants upfront, so ISOs and MLSs can focus ge merchants upfront, so ISOs and MLSs can focus
C began purchasing residual streams in 2006, when egan purchasing residual streams in 2006, when on generating new sales.generating new sales.
u
utter LLC founder and President David Daily tter LLC founder and President David Daily
on
b
h
he perceived a growing need for alternative e perceived a growing need for alternative
Because sellers have differing needs and objectives, Cutter have differing needs and objectives, Cutter
Because sellers
C financing resources to help build ISO and mer-financing resources to help build ISO and mer-
p
chant level salesperson (MLS) businesses. Combining ant level salesperson (MLS) businesses. Combining
ch provides flexible options for structuring payments to rovides flexible options for structuring payments to
sellers as well. One exam
his payments industry knowledge with asset-valuation is payments industry knowledge with asset-valuation sellers as well. One example is the partial residual purchase ple is the partial residual purchase
h
as o
e as opposed to a full sale. "The multiple paid is based on a pposed to a full sale. "The multiple paid is based on a
expertise he had gained in the mergers and acquisitions xpertise he had gained in the mergers and acquisitions
p
sp percentage of the residual stream up to 75 percent," Shomo ercentage of the residual stream up to 75 percent," Shomo
sphere, Daily initially focused on acquiring portfolios here, Daily initially focused on acquiring portfolios
said. "T
wit
with less than $5,000 in monthly residuals. h less than $5,000 in monthly residuals. said. "The seller receives a monthly residual on the portion he seller receives a monthly residual on the portion
t that is over the purchased amount. This scenario allows hat is over the purchased amount. This scenario allows
t
Since t the seller to receive a cash infusion and continue to collect he seller to receive a cash infusion and continue to collect
Since then, Cutter has broadened its scope by tackling hen, Cutter has broadened its scope by tackling
a residual stream." esidual stream."
lar
larger acquisitions and targeting areas of emerging growth. ger acquisitions and targeting areas of emerging growth. a r
"
"We have expanded our acquisition footprint to include We have expanded our acquisition footprint to include
residuals from all types of electronic payments," Daily esiduals from all types of electronic payments," Daily New funding programsg programs
r
New fundin
said. "W
said. "While most deals are still from credit card portfolios, hile most deals are still from credit card portfolios,
we ar In December 2012, Cutter appointed Mark Wilson the n December 2012, Cutter appointed Mark Wilson the
we are seeing increased activity from gift/loyalty, ATM, e seeing increased activity from gift/loyalty, ATM,
I
ch company's Senior Vice President of Business Development. ompany's Senior Vice President of Business Development.
check and ACH portfolios." He added that most of Cutter's eck and ACH portfolios." He added that most of Cutter's
c
business comes through referrals.usiness comes through referrals.
b Tasked with engaging ISOs in the development of strategic asked with engaging ISOs in the development of strategic
T
f funding options, Wilson has introduced programs that unding options, Wilson has introduced programs that
e
enable ISOs to fund signing bonuses and buyout nable ISOs to fund signing bonuses and buyout
Flexible seller options lexible seller options
F
p
programs.rograms.
Recognizing the dedicated hard work that goes into ecognizing the dedicated hard work that goes into
R
"
b "ISOs can use these programs to their advantage as a ISOs can use these programs to their advantage as a
building merchant relationships, Cutter's selling strategies uilding merchant relationships, Cutter's selling strategies
r
ar recruiting tool and enjoy a financial benefit by being ecruiting tool and enjoy a financial benefit by being
are designed to help ensure the merchant portfolio transfer e designed to help ensure the merchant portfolio transfer
able to focus t
process is smooth. And an experienced relationship rocess is smooth. And an experienced relationship
p able to focus their marketing dollars in other areas of heir marketing dollars in other areas of
t
management team is involved to support each stage. gement team is involved to support each stage.
mana their company, since they are not funding these upfront heir company, since they are not funding these upfront
programs," Wilson said.rograms," Wilson said.
p
M
Many members of the Cutter team have been with any members of the Cutter team have been with
F
t
the company from the beginning. Following the 2006 he company from the beginning. Following the 2006 For ISOs that may have inactive agents, the company offers or ISOs that may have inactive agents, the company offers
a solution. "Cutter of
acquisition of a Pennsylvania-based ISO, Cutter retained f a Pennsylvania-based ISO, Cutter retained
acquisition o a solution. "Cutter offers buyout programs to ISOs with fers buyout programs to ISOs with
sma
a majorit smaller residual streams being paid to inactive agents so ller residual streams being paid to inactive agents so
a majority of the ISO's account services staff, including y of the ISO's account services staff, including
p
payments industry veteran Denise Shomo, who now ayments industry veteran Denise Shomo, who now t they can streamline their residual payouts," Wilson said. hey can streamline their residual payouts," Wilson said.
"Residuals are paid to one source as opposed to hundreds
manages Cutter's operations and acquisitions. As Chief "Residuals are paid to one source as opposed to hundreds
manages Cutter's operations and acquisitions. As Chief
of inactive agents. Typically, when an agent is no longer
Operating Officer, Shomo said, "We find that servicing the
Operating Officer, Shomo said, "We find that servicing the of inactive agents. Typically, when an agent is no longer
boarding accounts, their merchants are not getting the
merchants in a purchased portfolio is crucial to maximizing
merchants in a purchased portfolio is crucial to maximizing boarding accounts, their merchants are not getting the
attention or are simply ignored." Cutter can step in and fill
the portfolio performance." attention or are simply ignored." Cutter can step in and fill
the portfolio performance."
the gap, he noted.
the gap, he noted.
38
38
