[skideeppow]

I have been using some more traditional loan programs and need to charge the merchant a point or two for the cost of the funds. Right now i am making 1%-2% points on the deals for an SBA backed loan.

I want to charge another point or two as an origination fee.The funder can not do it for me.

Any programs out there that allow me to send the merchant an invoice and he can pay online cleanly and quickly.
Or if you have any recommendations on how to invoice them and get paid, i would appreciate it.

Thanks

[JayBallentine]

I have been using some more traditional loan programs and need to charge the merchant a point or two for the cost of the funds. Right now i am making 1%-2% points on the deals for an SBA backed loan.

I want to charge another point or two as an origination fee.The funder can not do it for me.

Any programs out there that allow me to send the merchant an invoice and he can pay online cleanly and quickly.
Or if you have any recommendations on how to invoice them and get paid, i would appreciate it.

Thanks

I've transacted tens of thousands of dollars with Funders and brokers using PayPal. I tried BoFA - disaster. With PayPal service related disputes CANNOT be disputed. Period. If you sold a PRODUCT, then yes. BoFA was attractive because of same day funds availability. But, merchant is literally always right.

My two cents.

[skideeppow]

Jay, i have a paypal account i use for various purchases, is there some special program they offer? business solution? If so you have the name? I can not imagine using my personal ebay account for my business transactions.

[funding pro]

Jay, if you were getting a lot of disputes, than you probably werent doing a great job of managing the merchants. I get that some people will sign the form and later try to back out of paying the fee once they receive the money, but this happens to us maybe 1 in 100.

[skideeppow]

so funding pro, who do you use?

[funding pro]

same bank i use for my checking

[JayBallentine]

Jay, i have a paypal account i use for various purchases, is there some special program they offer? business solution? If so you have the name? I can not imagine using my personal ebay account for my business transactions.

There is PayPal for Business. PayPal for business allows you to connect your business bank account with PayPal to conduct... Business. You don't need an Ebay account at all to use PayPal (for business). You just really need to trust that person receiving the invoice will actually pay on arrival.

Jay, if you were getting a lot of disputes, than you probably werent doing a great job of managing the merchants. I get that some people will sign the form and later try to back out of paying the fee once they receive the money, but this happens to us maybe 1 in 100.

I test often but super frugally. $300 transaction in this case. I was comfy with PayPal already. Would not have risked a cent more on this test. $300 should give you an idea as to the quality of the merchant.

[Ocean Financing]

Try 1st ACH, super easy to use and set up.

[Andy]

Typically you would have the merchant sign a service agreement authorizing you to deduct your fees directly from their business bank account. Then you would have your bank or your payment processor pull the fee

as mentioned above, you will get the occasionally merchant who will put a stop payment on it or who just has no money in the account so it bounces nsf but its fairly rare maybe 1 or 2 in 100

[JayBallentine]

Typically you would have the merchant sign a service agreement authorizing you to deduct your fees directly from their business bank account. Then you would have your bank or your payment processor pull the fee

as mentioned above, you will get the occasionally merchant who will put a stop payment on it or who just has no money in the account so it bounces nsf but its fairly rare maybe 1 or 2 in 100

There was no stop payment in my case. Merchant voluntarily connected their bank to BoFA to pay bill. Funds cleared same day.

Then, the process for merchant was like when your bank credits you back money for the gym membership you forgot to cancel.

[MCNetwork]

I have been using some more traditional loan programs and need to charge the merchant a point or two for the cost of the funds. Right now i am making 1%-2% points on the deals for an SBA backed loan.

I want to charge another point or two as an origination fee.The funder can not do it for me.

Any programs out there that allow me to send the merchant an invoice and he can pay online cleanly and quickly.
Or if you have any recommendations on how to invoice them and get paid, i would appreciate it.

Thanks

First, you have to have a business entity and business checking account. Then, open an account with ACH Works. Prepare a one page "Origination Form" that specifies the closing fee and the amount and get the merchant's signature on it. Debit the merchant's account via ACH Works. Problem solved. You don't want to use Paypal for this type of transaction. It looks way too shady and unprofessional. The merchant will know that something is off.

[JayBallentine]

First, you have to have a business entity and business checking account. Then, open an account with ACH Works. Prepare a one page "Origination Form" that specifies the closing fee and the amount and get the merchant's signature on it. Debit the merchant's account via ACH Works. Problem solved. You don't want to use Paypal for this type of transaction. It looks way too shady and unprofessional. The merchant will know that something is off.

ACH works has been cutting folks in this space off... "Soft banning" revenue based funding companies. They still process for you?

[MCNetwork]

Yes I haven't had any issues after 5 years with them.

[Sean Cash]

ACH works has been cutting folks in this space off... "Soft banning" revenue based funding companies. They still process for you?

I actually talked to Ryan McCurry, the president of ACH Works yesterday at the Lend360 conference about this. If you are an ISO that just wants access to ACH processing to debit your closing fees, then you may have challenges.

For funders though, they are happy to process your daily debits for MCA deals and loans. They consider themselves to be very savvy in this space, they seem to really understand it, and the message I got is that they are eager to sign up new clients. That means reputable ones of course.

But if you are indeed just looking to debit closing fees and nothing else, then they might not be the right fit.

If anyone needs direct contact info for ACH Works, let me know.

[J.Celifarco]

ACH works is great have never had issues with them