Glossary · broker

Shotgunning

Also called blasting, mass submission, spraying the file, shotgun submission.

A broker submitting one application package to many funders at once, so the same file is pulled, priced and marketed by a dozen shops the business never chose.

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

What it means

The broker takes your application, three to six months of bank statements and a signed authorisation, and sends the package to a list. The justification offered is that the deal is being shopped for the best terms. Sometimes that is what happens. Often the list is simply everyone the broker has an ISO agreement with, sent in a single email.

What follows

Credit inquiries.Each funder that works the file may pull. Whether a given pull is soft or hard depends on that funder's process, and the authorisation you signed generally permits both, on the business and on you personally.
A permanent marketing list.Every recipient now holds your revenue, your deposit pattern, your existing positions, your phone number and your email. Nothing requires them to delete it when they decline.
Stacking solicitation.The shops that lost the deal know approximately what you took and when. Calls offering second-position money start shortly after funding and continue for years.
Deal burn.A funder that receives the same file from three brokers in a week may decline it — not on credit, but because a widely shopped file suggests undisclosed positions or a merchant in trouble.
Broker conflicts.Two brokers submitting to the same funder triggers a dispute over who owns the deal, and the resolution is often that neither can proceed cleanly.

Where this one catches people

The authorisation form is where all of this is consented to, in one paragraph, usually above the signature line on page one. The standard wording authorises the broker "and its affiliates, funding sources, assigns and service providers" to obtain consumer and business credit reports and to share your information for the purposes of the application. One signature can therefore license dozens of pulls and an indefinite marketing list, and it is legally effective.

Before you sign, ask in writing which funders the file will be sent to and how many. Ask that the authorisation be limited to named funders, or to a stated number, and that further submissions require your consent each time. Some brokers will agree; the ones who will not have told you the answer. If your credit is being pulled during a period when you are also applying for a mortgage, a lease or an SBA loan, the timing matters more than the principle.

Where you will meet this term

Merchant Cash Advance Working Capital Term Loan Business Line of Credit

Read next

Advance-Fee ScamA funding offer that requires you to send money before any money arrives — an insurance premium, a good-faith… Broker (ISO)An intermediary who takes a business's application, submits it to funders and is paid by the funder that clos… Broker agreement (ISO agreement)The contract between a funder and a broker setting commission, exclusivity, clawback and conduct terms, to wh… Credit pullA request for your credit file, either a soft inquiry that does not affect scores or a hard inquiry that does… Exclusivity clauseA term binding a business to work with one broker or funder for a period, or barring it from shopping the sam… Hard credit pullA credit report request tied to an actual application for credit, recorded on the report where other lenders … Independent sales organization (ISO)A sales firm that originates funding applications and places them with funders for a commission — the party m… Soft credit pullA credit file review that does not affect the score and is not visible to other lenders, used for pre-qualifi… StackingTaking an additional advance or loan while an existing one is outstanding, so two or more fixed debits run ag… SubmissionA broker packaging a merchant's application and documents and sending them to funders for a decision — and, w…

Shotgunning — common questions

What does shotgunning mean?

A broker submitting one application package to many funders at once, so the same file is pulled, priced and marketed by a dozen shops the business never chose.

Where does shotgunning catch people out?

The authorisation form is where all of this is consented to, in one paragraph, usually above the signature line on page one. The standard wording authorises the broker "and its affiliates, funding sources, assigns and service providers" to obtain consumer and business credit reports and to share your information for the purposes of the application. One signature can therefore license dozens of pulls and an indefinite marketing list, and it is legally effective.

Is shotgunning the same as an interest rate?

Shotgunning is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.

Which products does shotgunning apply to?

Merchant Cash Advance, Working Capital, Term Loan, Business Line of Credit.

Is there a worked example of shotgunning?

Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.

What else should I read alongside shotgunning?

Advance-Fee Scam, Broker, Broker agreement, Credit pull, Exclusivity clause.

Has this definition been checked?

Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.

Is this legal advice?

No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.

Can I suggest a term?

Yes — [email protected]. The glossary grows from what people are actually shown in contracts.