[1StopFunding]

Consolidating a merchant who has an advance with Expansion Capital. Can someone please tell me what these guys are requesting with the statement in bold? I've called Expansion, but got their voicemail. Is this saying if we consolidate and pay them off, they are tacking on an additional $1200? Thanks guys! Never seen a statement like this on payoff letter before.

Merchant agrees to transfer the remaining RTR balance due in the total amount of $9,197.00 from Expansion

Capital Group, LLC. Contract No xxxxx dated and signed on xxxxx. If this payoff is received from a third

party (not the above named merchant), the merchant agrees to transfer the remaining RTR balance due in the

total amount of $10,367.

[WhoisKingsley]

Never seen this before. So if a payoff letter is requested by a third party (ISO/Broker) the Funding Company can tag a fee to the Payoff? Who is getting this fee? What does this fee cover?

[Regium]

Could be the merchant was promised a early payoff discount - which is only granted if he is the one paying off.

If paid off by a third party, the full balance is required to be paid.

If its a "fee" in the case of a third-party company paying off, that is absurd

[1StopFunding]

Amanda, that's what I'm trying to find out. The merchant called them yesterday to request the payoff. I copied and pasted the exact statement minus the merchant's info as it was on the payoff letter.

Mikhail, that makes sense if he was promised an early payoff discount. I'll find out from him.

[MK14]

Could be the merchant was promised a early payoff discount - which is only granted if he is the one paying off.

If paid off by a third party, the full balance is required to be paid.

If its a "fee" in the case of a third-party company paying off, that is absurd

That makes sense. I can see when there is an Early payoff discount how there could be a fee attached to it. Does the merchant have any issues with it? I would have them check their contract and call them directly for an explanation.

[ridextreme]

they are discounting his payoff if he renews. If he doesn't renew, he doesn't get the discount. No big deal.

[Chambo]

Expansion has early payoff breakdown in their contracts. I'm guessing that only applies if the merchan tis paying them off directly. If they are paid off by a third party, they want to be paid in full

[len@accfunding.com]

Here is the language from their Early Prepay Addendum:

" The balance cannot be satisfied through funding from a competitive organization, be it bridge financing or Merchant Advance"

[Chambo]

Bingo!

[ridextreme]

Standard stuff here. They get a discount if they renew or if they pay it off with their own money. When they leave and go with a competitor, no discount. Not so mind boggling.

[1StopFunding]

Thanks guys! Never seen that on a payoff before.

[1StopFunding]

Got a call from John McKenzie over at Expansion. He confirmed the difference in the 2 figures is an early pay discount if the merchant pays off himself!

Thanks John for clarification!

[iamchmod]

Ms. Tibbs,

I just want to confirm the difference between the two payoff amounts. There is no additional fee charged if a merchant pays us off through a third party but they will not be eligible for ECG's Early Payment Discount. They must pay us off directly in order to be eligible for the discount. I hope this helps. Thank you.