[newmcaagent]

How does a buy rate program work for agents? What is the difference from a funding companies perspective? Thanks in advance.

[MCNetwork]

The buy rate is the rate that gives the Agent zero commission on an ACH loan. It's up to the Agent to add the amount of commission he thinks he can sell to the buy rate up to the maximum that each lender allows (usually 10-12 points on funded amount). Think of it in terms of the auto industry. The buy rate is the dealer invoice price and it's up to the salesman to sell the car anywhere from the dealer invoice up to the MSRP (or maximum allowed price). The salesman's commission is based on the spread. It's up to the Agent to try and maximize his spread between the buy rate and the rate the yields the highest commission.

[newmcaagent]

Why do funders offer the buy rate program over a straight pricing matrix?

[rld]

To attract better agents..

[MCNetwork]

Funders usually do the straight pricing matrix for credit card cash advances and buy rate programs for ACH loans. I think it makes it easier for agents to adjust the commissions on the fly.

[GRP Funding]

Funders usually do the straight pricing matrix for credit card cash advances and buy rate programs for ACH loans. I think it makes it easier for agents to adjust the commissions on the fly.

We offer buy rate pricing on both MCA & Loan. Easier for ISO's to adjust pricing and to structure comp plans with their sub-ISO's or reps. Seems like a lot of funders switched to buy rate pricing when ACH deals & Loans started becoming more popular. It also appeals to a larger network of sales offices. People in the leasing space, mortgage industry, etc are already familiar with how buy rates work.

[1StopFunding]

I for one prefer the buy rate pricing...it serves as a great bargaining tool than just a straight flat rate price.