Results 1 to 19 of 19
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05-18-2021, 10:25 AM #1
- Join Date
- Dec 2016
- Posts
- 379
What Prepayment Incentives are everyone doing these days?
It seems like half of the deals I fund, the merchants are inquiring about our prepayment incentives. It always makes me laugh inside since it's super rare that anybody ever pays off early anyway, but I was just curious what Prepayment Incentives are everyone doing these days?
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05-18-2021, 10:33 AM #2
- Join Date
- May 2021
- Posts
- 12
We provide an aggressive prepayment discount schedule. Terms go out to 36 months, bi-weekly payments available, we offer equipment financing as well. Shoot me a DM to connect
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05-18-2021, 11:03 AM #3
- Join Date
- Mar 2018
- Location
- Salt Lake City, UT
- Posts
- 86
Our standard pre pay discount if the merchant asks is 10% off the interest in the first 30 days then 5% off in 31 to 60 days after funding. So nothing crazy. I agree it is rare that a merchant pays off early but it's a good sign if they are asking those sort of questions.
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05-19-2021, 05:39 PM #4
- Join Date
- Mar 2019
- Posts
- 254
I have done some extremely aggressive Early pay options on certain deals.
Im referring to much more than the standard 10% off in 30 days and 5% off in 60 days.
I have some merchants that pay me off every 30 days and take a new advance since the pay off discount is so strongEPIC ADVANCE
Mark@epic-advance.com
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05-20-2021, 08:05 AM #5
- Join Date
- Jan 2020
- Posts
- 88
I’ve done early pays where we get merchants to 1.09 in short term deals. Otherwise 10-15% or more is no issue. Never understood why people do less discount after 30 days if the discount is on the current balance at the time of payoff.
But either way feel free to message me.
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05-20-2021, 09:54 AM #6
- Join Date
- Dec 2018
- Location
- 48 Wall St. New York, NY 10005
- Posts
- 271
Our typical early pay is -
Days 1 - 30, 12%
Days 31 - 60, 8%
Days 61 - 90, 4%
We can get more aggressive, if needed.Jeff Pecori
Business Development & ISO Relations
VitalCap Fund | 48 Wall St. | New York, NY 10005
P. 850.630.7509 Ext.101 | F. 646.219.7949
jeff@vitalcapfund.com
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05-20-2021, 01:10 PM #7
- Join Date
- Dec 2016
- Posts
- 379
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05-20-2021, 05:04 PM #8
- Join Date
- Mar 2019
- Posts
- 254
EPIC ADVANCE
Mark@epic-advance.com
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05-20-2021, 05:23 PM #9
- Join Date
- Dec 2019
- Posts
- 65
We offer up to 15 months on A paper MCA submissions and 24 months on Term Loan submissions. Very aggressive buyback addendum's as well. Feel free to reach out for additional information.
Benjamin Lugassy
SOS Capital
blugassy@soscapital.com
P:212-235-5462
F:212-235-5459
www.soscapital.com
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06-09-2021, 04:55 PM #10
- Join Date
- Jun 2021
- Posts
- 3
My team at Select Funding has engineered what we are calling “The Advantage Program”. It's a true, no prepayment penalty program that offers the merchant the ability to prepay the contract at any time and get all unpaid factor charges forgiven. We’ll pay up to 6 points initially on the program and will release additional commission if/when the contract goes to term. Check out this quick explainer video -
Feel free to reach me directly for more on this program.
Pooja Nene
Business Development
(818) 292-0604
pooja@selectfunding.com
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06-09-2021, 05:17 PM #11
- Join Date
- Sep 2016
- Posts
- 169
UFS standard discount is 10-12% if paid in 30 days and 5-7% if paid in 60
we will do prepays as low as 1.13 on select deals
side note a lot of companies will offer prepays but not if another Company is paying them off ( we will always offer it)Irving Winograd
Unique Funding Solutions
646-460-3139
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06-10-2021, 11:46 AM #12
- Join Date
- Nov 2018
- Location
- Miami
- Posts
- 116
Fox has some creative EPO's, Daniel got me a 1.12 within 30 days on 125k. Every deal is case by case, But it's how you can work it out with the merchant.
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06-15-2021, 04:33 PM #13Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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06-15-2021, 04:44 PM #14
- Join Date
- Feb 2018
- Posts
- 1,349
most merchant's never prepay early and several contracts forbid other funder's from paying it off to get the discount. How would they pay 6 points on a 1.03/30 day payoff? The broker would make more than the company.
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06-15-2021, 05:03 PM #15
- Join Date
- Feb 2019
- Location
- FL
- Posts
- 95
Anyone that's asking about early pay is a strong file and as a funder, I would fight really hard to win that deal.... feel free to reach out zalman@askzalman.com
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06-15-2021, 05:38 PM #16
- Join Date
- Feb 2017
- Posts
- 3,411
Zach and Pooja, from my understanding / conjecture, the reason why nobody else does this is because to put capital at risk for low ROI on the investors side.
Something tells me that almost no merchant ever takes this option, so there's no reason why not to offer?
I'd love some insight into the understanding here.
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06-15-2021, 07:14 PM #17
- Join Date
- Jun 2021
- Posts
- 3
Hey Micah,
Absolutely! The math isn’t quite “almost no merchant” pays off early but it is a lot less that suggest they will in the sales process. We want to provide to a product that a merchant can say “yes” to.
We’ve taken some losses on the program already after paying an ISO 6 points and the merchant paying us off after a large receivable comes in or inventory flips quickly after 3 or 4 payments. We will never ask for the 6 points back and will pay more if/when the deal goes to term (and most will).
I don’t know of a better prepay option in the market but know it is getting us market share.
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06-15-2021, 07:35 PM #18
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05-17-2022, 11:25 AM #19
- Join Date
- May 2022
- Posts
- 6
My team at Select Funding has engineered what we are calling “The Advantage Program”. It's a true, no prepayment penalty program that offers the merchant the ability to prepay the contract at any time and get all unpaid factor charges forgiven. We’ll pay up to 6 points initially on the program and will release additional commission if/when the contract goes to term. Check out this quick explainer video -
https://www.youtube.com/watch?v=iqAjNPMll4Y
Lets add this program to your tool belt!
Dakota Cooley
818-928-3957
Dakota@selectfunding.com
https://www.linkedin.com/in/dakota-cooley-a6997554
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