[Quickfunder]

We funded a $275K renewal with Kapitus that was supposed to pay 6 points. It was an extremely low-ball offer already, with Kapitus applying a buy-rate around 1.45 on this deal that kept changing. This was a deal we first funded in October for a 12 pt. upsell. But Kapitus claimed since merchant was renewing only 3 monthss in and consolidating a large balance, the risk was higher -- so we backed off on the high buyrate. After our points kept changing on the offers, we eventually sold it at 6 points.

Kapitus paid us out 2 points.

Now they are claiming they only pay on the net for renewals, so that it was 6 pts on what the merchant netted.

Everyone knows the industry standard is paying on gross and there is nothing in our contract that says we get paid on net. Curious if this is happening to any other ISO's out there and cautioning others to beware of working with Kapitus. The offer we chose in the portal was six points built into the offer -- nothing about 2 points on net. This is a bait & swtich scheme clear and simple.

[abfunders]

Kaptius pays renewals on net, that's pretty well known. FYI, Rapid just did the same thing in an email I got the other day. They changed from max upsell of 8 points and renewals on net, not gross.

[Olderguy]

I worked for a direct lender that paid on net renewals...never on gross.

[Oxforddan]

Kapitus changed to paying on the net during covid. I am sure the higher ups haven't changed it back due to an increase in profitability. There are a few workarounds if you have the volume. You can get them to pay on gross with 7 figures in monthly volume. I also believe they have a tier where they pay on half of the refi'd amount. Last option is get your rep to give you an aggressive monthly volume bonus. The only thing I will say in their defense is they have been pretty aggressive on discounting refi balances for most of my deals. Other than that I agree, yes its shit and their greed has made me far less loyal to them.

[closer129]

I always pay on the funded amount of what the contract says unless it is a special circumstance and brokers will knw before contracts go out. Feel free to reach out to me for an iso agreement.

Scott Platto
scott@tmrnow.com
tmrnow.com
212-220-9872

[Quickfunder]

Kapitus changed to paying on the net during covid. I am sure the higher ups haven't changed it back due to an increase in profitability. There are a few workarounds if you have the volume. You can get them to pay on gross with 7 figures in monthly volume. I also believe they have a tier where they pay on half of the refi'd amount. Last option is get your rep to give you an aggressive monthly volume bonus. The only thing I will say in their defense is they have been pretty aggressive on discounting refi balances for most of my deals. Other than that I agree, yes its shit and their greed has made me far less loyal to them.

We've never been paid on net for renewals in 13 years. And the larger problem is that they advertised their offers with points correlating to the total gross funding amount, not the net. Had we been notified of the change or were it in writing, we would certainly consider placing that same deal elsewhere. It's a huge slap in the face to any ISO who is bringing a $275K deal they are going to profit 50 points on and give us a cheap 2 points for bringing them business. Especially considering this merchant just paid off a huge balance within 3 months for them that we brought to them.

[Lmonus]

We pay on the Gross funding amount, always - Ide love to snag a deal away from any shop that pays less on refi's. Feel free to send them over.

[Michael I]

a couple of years now they have been paying on net

[Oxforddan]

We've never been paid on net for renewals in 13 years. And the larger problem is that they advertised their offers with points correlating to the total gross funding amount, not the net. Had we been notified of the change or were it in writing, we would certainly consider placing that same deal elsewhere. It's a huge slap in the face to any ISO who is bringing a $275K deal they are going to profit 50 points on and give us a cheap 2 points for bringing them business. Especially considering this merchant just paid off a huge balance within 3 months for them that we brought to them.

Honestly I totally agree with you. I will say they definitely sent you emails and notifications at some point since they are pretty by the book. Even down to the iso agreement saying after 30 days they will steal your deal. With that being said I fund about 20% of what I would with them if they just paid on gross and weren't greedy pos.

[Andrew@eFi]

We always pay 100% on renewals.. We can offer aggressive buyouts if you're looking to move some paper to us.

A- / B Paper
6 - 12 Month Terms
Buy Rates as low as 1.26
Prepays starting at 1.09

Email for our guidelines

[Gene148]

email for Guidelines.

eugene@equitaadvance.com

[DiamondBL]

I am pretty sure IOU pays on Full Renewal

[VitalCapJeff]

We pay on the funded amount for renewals, same as original deal's commish.

Reach out for a copy of our guidelines.

[goldstar1]

At Lendora we pay commission on funded amount whether new deal or renewal.
We do aggressive 2nd position offers if at any point you want to move on over.
Always looking for new ISO hit me up and we can discuss more

[CLARITYMAC]

We pay full commission on renewals, on the gross. And that is regardless of whether or not our brokers work on the deals! Shoot me an email to mac@clarityadvance.com and let's chat

[rmckellar]

I dont know what everyone is talking about, I've had merchants at Kapitus for years that have renewed within the last 6 months and the commission was on the contract amount, not the net.

[Quickfunder]

We funded a $275K renewal with Kapitus that was supposed to pay 6 points. It was an extremely low-ball offer already, with Kapitus applying a buy-rate around 1.45 on this deal that kept changing. This was a deal we first funded in October for a 12 pt. upsell. But Kapitus claimed since merchant was renewing only 3 monthss in and consolidating a large balance, the risk was higher -- so we backed off on the high buyrate. After our points kept changing on the offers, we eventually sold it at 6 points.

Kapitus paid us out 2 points.

Now they are claiming they only pay on the net for renewals, so that it was 6 pts on what the merchant netted.

Everyone knows the industry standard is paying on gross and there is nothing in our contract that says we get paid on net. Curious if this is happening to any other ISO's out there and cautioning others to beware of working with Kapitus. The offer we chose in the portal was six points built into the offer -- nothing about 2 points on net. This is a bait & swtich scheme clear and simple.

I appreciate all the feedback and replies on this. We've had some discussions with Kapitus - from what we've learned, there was a lapse at the outset of Covid when a lot of parameters changed as with all funders. We've had a good experience working with them outside of this episode so will look to continue that. Not that we agree with the net/renewals policy, but misunderstandings are misunderstandings and thankfully we were able to see where the error came from.