[MCAVeteran]

"A merchant processing 30K on average a month under our Equity program will receive a contract for 76,000 and will receive 8 disbursements of 9,500."

So in this example, you account for this specific merchant example doing a projected $360,000 in future cc sale business over 12 months and are willing to advance them $76,000 of that $360,000, or, roughly 21% of the annual projected cc sale volume through increments every 6.5 weeks. What about the ISO who is only getting commissions on 9,500 and you mentioned "as long as they do not default" does that mean the ISO could only get commission on 9500 and if the merchant defaults they do not get it on the other disbursements? Is default defined as a slow pay or a material breach of contract?

[HeatherF]

"A merchant processing 30K on average a month under our Equity program will receive a contract for 76,000 and will receive 8 disbursements of 9,500."

So in this example, you account for this specific merchant example doing a projected $360,000 in future cc sale business over 12 months and are willing to advance them $76,000 of that $360,000, or, roughly 21% of the annual projected cc sale volume through increments every 6.5 weeks. What about the ISO who is only getting commissions on 9,500 and you mentioned "as long as they do not default" does that mean the ISO could only get commission on 9500 and if the merchant defaults they do not get it on the other disbursements? Is default defined as a slow pay or a material breach of contract?

In regards to the % of funded- yes that is correct as once again these are merchants with tax liens, judgments, credit below 550 and therefore all starter and decline programs offer below 50% of their volume, due to the risk.

We are giving iso's 20% of the initial disbursement so on that $9500 initial disbursement the agent would 1900.00 and every subsequent disbursement would get 5%- we do heavy incentive up front due to the likely hood that the deal will go bad at some point during the advance ( once again due to the type of merchant we fund) if the advance is carried to term the iso would make 8,550.00 over the course of the year. Which works out to be 11.25% of the contract amount.

Default is considered a breach of the contract ( so yes slow pay does calculate into it but not if the slow pay is accounted to seasonality)