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01-26-2014, 06:29 AM #1
- Join Date
- Jan 2014
- Posts
- 4
I have communicated directly with the ceo of Lendberry. Pending a reply for greater clarity. For now I can convey that they offered a scale up from 60% to 70%. As posted:
Net commissions on account receivables funding will usually average between 4.8% and 7.2% of the total loan amounts; obviously higher as you scale up in the commission tiers.
Sometimes these loans (funds) can be marked up 14% above money cost. At the top of the scale (the 70% commission) you would earn 9.8% commission on those deals. That is almost 10% of the total loan amount. About 60% or more of your loans will be this type of loan.
The Standard Merchant Cash Advance -- These will have a money cost of 35% to 40% for 4 to 6 months and they can usually mark them up only 5% above money cost (3% net commission for you) depending upon the lender. This is for merchants that have a cash advance or loan outstanding with a high balance remaining and for merchants with poor bank statements (low balances, a lot of insufficient funds, etc.). They say about 20% or less of your loans will be this type of loan
The Super Bad Loan- This costs the merchant 49% for 3 or 4 months and comes straight out of the credit card processing. It is for the merchant with a less than 500 FICO or a merchant that has messed up their business credit and banking. We get 5% commission on these loans (3% net commission for you). Less than 10% of your loans will be this type of loan.
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