Results 1 to 12 of 12
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04-28-2015, 11:52 AM #1
- Join Date
- Apr 2015
- Posts
- 6
prepayment
who offers no prepayment penalty, and a prepayment discount?
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04-28-2015, 12:03 PM #2
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.
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04-28-2015, 12:06 PM #3
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04-28-2015, 12:17 PM #4
- Join Date
- Sep 2012
- Posts
- 199
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.
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04-28-2015, 12:44 PM #5
MCC offers a prepayment discount
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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04-28-2015, 12:50 PM #6
- Join Date
- Jun 2014
- Posts
- 89
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.
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04-28-2015, 01:21 PM #7
- Join Date
- Sep 2012
- Posts
- 199
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.
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04-28-2015, 02:17 PM #8
- Join Date
- Apr 2015
- Posts
- 188
We do
Shoot me an email and talk
nathaniel@instafundllc.com
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04-28-2015, 02:25 PM #9
prepayment
CAN just came out with a prepayment discount.
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04-29-2015, 03:15 PM #10
- Join Date
- Mar 2015
- Posts
- 4
Expansion has prepayment discounts in their contracts
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04-29-2015, 06:12 PM #11
Superior offers prepayment discounts.
Kaitlyn Miller
ISO Coordinator
770-617-2377
KM@SuperiorCapitalfund.com
http://superiorcapitalfund.com/
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04-29-2015, 07:24 PM #12
- Join Date
- Oct 2014
- Location
- Naples, FL
- Posts
- 474
ECG & National both offer prepayment discounts. PM me if you'd like to split the commission.