[JSL23]

Okay, so I have a client renewing with them, only owes a couple thousand, getting 13,000ish. I have paid Pearl off before but havent done much with them as far as Renewals go. I do know there is a 5 day lag with their ACH system and how that works when they are paid off, but what happens to that money on a renewal?

Example: Merchant X owes $2000 and is paying $100/daily. He gets a renewal(say $10,000) and nets $8000, minus UW fees. Merchant X truly owes $1500(lets assumehe has not missed a payment). My qquestion is: What happens to that $500? Does it get credited towards the balance(makes sense)? Wired back to Merchant X once the system catches up(cool)? Or, does it just vanish into thin air(Grimy ****)? I have heard it is #3 vanishes into thin air. Please tell me this is not true.....or at least entertain me by justifying it if it is.

[Funder Mark]

Speak to your rep there to explain the process.

[FUSIONCAPITAL]

Usually when we get paid off early any excess collections we credit back to the merchant immediately once funds clear from the date of payoff, as is the case with most reputable Funders.

In any case, as a broker the job is not complete until merchant gets what is due to them so these are good questions to be asked.

[JSL23]

Speak to your rep there to explain the process.

I plan on it, but wanted some independent, objective insight.

[JSL23]

Usually when we get paid off early any excess collections we credit back to the merchant immediately once funds clear from the date of payoff, as is the case with most reputable Funders.

In any case, as a broker the job is not complete until merchant gets what is due to them so these are good questions to be asked.

Good. That's what I expect anyone would do, because if not the Merchant is getting screwed. It's not enough to charge a 1.45-1.499, but to bang people over the head for 5 days worth of payments on top of it......I'd really love to hear an excuse for it(if anyone does do that)