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  1. #1
    Senior Member Reputation points: 12684
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    Early Pay Discount

    What is the usual commission structure to an ISO on an early pay discount?

    Example:

    100 days 1.49 pays 12. What is the commission if early pay ends up being 1.20?

  2. #2
    Still the same 12 pts... usually a funder just gives you their buy-rate at different early payment windows and your upsell is included. So a deal may have a 1.07 1-30, 1.13 31-60, etc. as the buy rate. If you add in 5 pts then the 1-30 discount becomes a 1.12 and the 31-60 becomes 1.18. Make sure you're clear with the funder if the pre-pays they give you are buy rates or sell rates. Everyone is a little different so it's probably best for you to ask the funder you have the offer with.

  3. #3
    Senior Member Reputation points: 12684
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    Quote Originally Posted by budlightboy View Post
    Still the same 12 pts... usually a funder just gives you their buy-rate at different early payment windows and your upsell is included. So a deal may have a 1.07 1-30, 1.13 31-60, etc. as the buy rate. If you add in 5 pts then the 1-30 discount becomes a 1.12 and the 31-60 becomes 1.18. Make sure you're clear with the funder if the pre-pays they give you are buy rates or sell rates. Everyone is a little different so it's probably best for you to ask the funder you have the offer with.
    Thanks!

  4. #4
    Senior Member Reputation points: 14091
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    Quote Originally Posted by budlightboy View Post
    Still the same 12 pts... usually a funder just gives you their buy-rate at different early payment windows and your upsell is included. So a deal may have a 1.07 1-30, 1.13 31-60, etc. as the buy rate. If you add in 5 pts then the 1-30 discount becomes a 1.12 and the 31-60 becomes 1.18. Make sure you're clear with the funder if the pre-pays they give you are buy rates or sell rates. Everyone is a little different so it's probably best for you to ask the funder you have the offer with.
    on a 1.20 EPA you expect to get paid 12 points ?

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