[Del Broadway]

who offers no prepayment penalty, and a prepayment discount?

[Funder Mark]

I can't imagine ANYONE charges a prepayment penalty, since effectively, we are buying future receivables. All prepayment means is early delivery, so why would anyone charge for that? I would imagine many companies offer discounts, but each one would have to take a look on a case by case basis. I know that some companies used to offer a 10% discount, if the full amount due was received within a month. Speak to your funders, see what they say.

[ridextreme]

I can't imagine ANYONE charges a prepayment penalty

a prepayment penalty means, if you take a 10 month deal and pay it off in 4 months, you are still charged for 10 months. They will not give you the cost of a 4 month deal. That is a prepayment penalty.

[Finance1]

Quickbridge has an early payment schedule addendum. IOU will forgive unpaid interest IIRC. I think TBB will also discount early pay.

In the past the policy was the early pay has to come from the merchant's funds and not a competitor payoff. Makes sense. There shouldn't be a reward for attrition.

[J.Celifarco]

MCC offers a prepayment discount

[Vfunding]

Early pay incentives are becoming more popular as competition increases. I have seen them with almost all of our A&B paper partners. Some have a standard early pay addendum in all of their deals and others add them to the contract on a case by case basis. It's definitely a step in the right direction for the industry. In our experience even a small early pay incentive is much appreciated by our clients and helps keep them loyal.

[Finance1]

Early pay discounts are nice window dressing when selling a deal. I think I've seen maybe 2-3 clients actually choose to pay off early with their own funds out of the 100's who have asked about it. From a funding perspective, it won't cut into margins much at all unless you allow early payoff when a competitor pays you off.

[nmanapat]

We do
Shoot me an email and talk
nathaniel@instafundllc.com

[1StopFunding]

CAN just came out with a prepayment discount.

[SReich]

Expansion has prepayment discounts in their contracts

[KM_Superior]

Superior offers prepayment discounts.

[Steven_O]

ECG & National both offer prepayment discounts. PM me if you'd like to split the commission.