[jotucker1983]

John Cut,

Let's break this down further.......

.....they would provide the sales rep with leads they generated from their call center which is not located in the US. They would start with about 10 of these leads per week and then they claim to open up other call centers would be 50-125 leads per week

What is a "lead" to this company? Is it a merchant that's been filtered off to be looking for some capital right now, can't get it from a conventional source, and needs an alternative source? Is that same merchant pre-qualified in terms of credit, liens, outstanding balances, etc.? Is that same merchant willing to pay the pricing of a merchant cash advance based on their Paper Grade? Is that same merchant willing to only use the money for a short period of time (6 - 15 months)?

.....they want the sales rep to do 300K per month and pay you 2% commissions, and 3.6 million for the year. They pay on the total amount funded of 2%.

See my response above, what type of leads are they going to be providing that's going to allow you to hit $300,000 a month in new deal origination? Furthermore, they are going to pay you 2%, which means that the "house" might be pricing deals with let's say 6% - 8% commission on them and out of that you get 2%. Again, are they pricing merchants based on their Paper Grade?

What if the "leads" they provide you put you in a situation where the merchant is A Paper with a 700 FICO, but you are required to push a 6 month 1.25 offer on them when there's 3 - 5 brokers on the merchant's phone pushing a 6 month between 1.12 - 1.20, where they will make 3 points on it (for this initial new deal, not counting their renewal monies)?

Why in the hell would the merchant go with you and not one of the other 5 brokers? You don't think "the house" would be pissed off at you for not "closing" their inefficiently priced cash advance?

My question is this is it worth it at 2%? or 76K per year. I feel this is a low ball offer, I need some advice, would you take this offer or not?

I'll put it to you like this, this isn't an "offer" of anything. It's all estimates. You have no idea what type of leads you are going to get and you have no idea what type of pricing you are going to be required to "push" on merchants. By paying you 2%, I'm sure they will price deals with at least 6 - 8 points on it, which most likely won't be competitive at all with the 2 - 5 other brokers calling your merchant which will affect your closing ratio significantly in this highly competitive market.

How much experience do you have in this industry? Can you duplicate whatever the "house" is going to do on your own independently? How are they generating your leads and what type of leads are these? What is the required pricing that they will have you "push" on merchants and is that pricing competitive with the marketplace standing of the prospect (their paper grade)?