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  1. #1
    Senior Member Reputation points: 1393
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    Kapitus just kept $15K commission from us. Beware.

    We funded a $275K renewal with Kapitus that was supposed to pay 6 points. It was an extremely low-ball offer already, with Kapitus applying a buy-rate around 1.45 on this deal that kept changing. This was a deal we first funded in October for a 12 pt. upsell. But Kapitus claimed since merchant was renewing only 3 monthss in and consolidating a large balance, the risk was higher -- so we backed off on the high buyrate. After our points kept changing on the offers, we eventually sold it at 6 points.

    Kapitus paid us out 2 points.

    Now they are claiming they only pay on the net for renewals, so that it was 6 pts on what the merchant netted.

    Everyone knows the industry standard is paying on gross and there is nothing in our contract that says we get paid on net. Curious if this is happening to any other ISO's out there and cautioning others to beware of working with Kapitus. The offer we chose in the portal was six points built into the offer -- nothing about 2 points on net. This is a bait & swtich scheme clear and simple.

  2. #2
    Senior Member Reputation points: 216519
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    Kaptius pays renewals on net, that's pretty well known. FYI, Rapid just did the same thing in an email I got the other day. They changed from max upsell of 8 points and renewals on net, not gross.

  3. #3
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    I worked for a direct lender that paid on net renewals...never on gross.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  4. #4
    Senior Member Reputation points: 31251
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    Kapitus changed to paying on the net during covid. I am sure the higher ups haven't changed it back due to an increase in profitability. There are a few workarounds if you have the volume. You can get them to pay on gross with 7 figures in monthly volume. I also believe they have a tier where they pay on half of the refi'd amount. Last option is get your rep to give you an aggressive monthly volume bonus. The only thing I will say in their defense is they have been pretty aggressive on discounting refi balances for most of my deals. Other than that I agree, yes its **** and their greed has made me far less loyal to them.

  5. #5
    Senior Member Reputation points: 9802
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    I always pay on the funded amount of what the contract says unless it is a special circumstance and brokers will knw before contracts go out. Feel free to reach out to me for an iso agreement.

    Scott Platto
    scott@tmrnow.com
    tmrnow.com
    212-220-9872

  6. #6
    Senior Member Reputation points: 1393
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    Quote Originally Posted by Oxforddan View Post
    Kapitus changed to paying on the net during covid. I am sure the higher ups haven't changed it back due to an increase in profitability. There are a few workarounds if you have the volume. You can get them to pay on gross with 7 figures in monthly volume. I also believe they have a tier where they pay on half of the refi'd amount. Last option is get your rep to give you an aggressive monthly volume bonus. The only thing I will say in their defense is they have been pretty aggressive on discounting refi balances for most of my deals. Other than that I agree, yes its **** and their greed has made me far less loyal to them.
    We've never been paid on net for renewals in 13 years. And the larger problem is that they advertised their offers with points correlating to the total gross funding amount, not the net. Had we been notified of the change or were it in writing, we would certainly consider placing that same deal elsewhere. It's a huge slap in the face to any ISO who is bringing a $275K deal they are going to profit 50 points on and give us a cheap 2 points for bringing them business. Especially considering this merchant just paid off a huge balance within 3 months for them that we brought to them.

  7. #7
    Senior Member Reputation points: 69645
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    We pay on the Gross funding amount, always - Ide love to snag a deal away from any shop that pays less on refi's. Feel free to send them over.
    Thank you,

    Lior Monus
    Business Development Manager
    CFG Merchant Solutions


    Direct: (646) 880-6764
    Cell: (516) 319-5826
    Fax: (646) 278-7322
    Lmonus@cfgms.com
    180 Maiden Lane New York, NY 10038

    www.cfgmerchantsolutions.com

  8. #8
    Senior Member Reputation points: 301165
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    a couple of years now they have been paying on net

  9. #9
    Senior Member Reputation points: 31251
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    Quote Originally Posted by Quickfunder View Post
    We've never been paid on net for renewals in 13 years. And the larger problem is that they advertised their offers with points correlating to the total gross funding amount, not the net. Had we been notified of the change or were it in writing, we would certainly consider placing that same deal elsewhere. It's a huge slap in the face to any ISO who is bringing a $275K deal they are going to profit 50 points on and give us a cheap 2 points for bringing them business. Especially considering this merchant just paid off a huge balance within 3 months for them that we brought to them.
    Honestly I totally agree with you. I will say they definitely sent you emails and notifications at some point since they are pretty by the book. Even down to the iso agreement saying after 30 days they will steal your deal. With that being said I fund about 20% of what I would with them if they just paid on gross and weren't greedy pos.

  10. #10
    Senior Member Reputation points: 99
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    Aug 2021
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    We always pay 100% on renewals.. We can offer aggressive buyouts if you're looking to move some paper to us.

    A- / B Paper
    6 - 12 Month Terms
    Buy Rates as low as 1.26
    Prepays starting at 1.09

    Email for our guidelines

  11. #11
    Banned Reputation points: 573
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    86

    email for Guidelines.

    eugene@equitaadvance.com

  12. #12
    Senior Member Reputation points: 5036 DiamondBL's Avatar
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    Beverly Hills, CA
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    I am pretty sure IOU pays on Full Renewal
    Jonathan Kohanoff
    B.R.E. #01962090

    Diamond Business Loans
    Beverly Hills, CA 90211
    jon@diamondbl.com
    www.DiamondBL.com

  13. #13
    Senior Member Reputation points: 6544
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    Dec 2018
    Location
    48 Wall St. New York, NY 10005
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    We pay on the funded amount for renewals, same as original deal's commish.

    Reach out for a copy of our guidelines.
    Jeff Pecori
    Business Development & ISO Relations

    VitalCap Fund | 48 Wall St. | New York, NY 10005
    P. 850.630.7509 Ext.101 | F. 646.219.7949
    jeff@vitalcapfund.com

  14. #14
    At Lendora we pay commission on funded amount whether new deal or renewal.
    We do aggressive 2nd position offers if at any point you want to move on over.
    Always looking for new ISO hit me up and we can discuss more
    Matthew Goldsmith
    Business Development Manager

    315-422-7670

    Matt@lendora.com

    www.lendora.com

  15. #15
    We pay full commission on renewals, on the gross. And that is regardless of whether or not our brokers work on the deals! Shoot me an email to mac@clarityadvance.com and let's chat
    Mac Jean
    Iso Relations Manager
    mac@clarityadvance.com
    www.clarityadvance.com

  16. #16
    Member Reputation points: 1158
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    Morristown, NJ
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    I dont know what everyone is talking about, I've had merchants at Kapitus for years that have renewed within the last 6 months and the commission was on the contract amount, not the net.
    ---------------------------------------------------------

    Rich McKellar



    www.linkedin.com/in/richardmckellar

  17. #17
    Senior Member Reputation points: 1393
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    Quote Originally Posted by Quickfunder View Post
    We funded a $275K renewal with Kapitus that was supposed to pay 6 points. It was an extremely low-ball offer already, with Kapitus applying a buy-rate around 1.45 on this deal that kept changing. This was a deal we first funded in October for a 12 pt. upsell. But Kapitus claimed since merchant was renewing only 3 monthss in and consolidating a large balance, the risk was higher -- so we backed off on the high buyrate. After our points kept changing on the offers, we eventually sold it at 6 points.

    Kapitus paid us out 2 points.

    Now they are claiming they only pay on the net for renewals, so that it was 6 pts on what the merchant netted.

    Everyone knows the industry standard is paying on gross and there is nothing in our contract that says we get paid on net. Curious if this is happening to any other ISO's out there and cautioning others to beware of working with Kapitus. The offer we chose in the portal was six points built into the offer -- nothing about 2 points on net. This is a bait & swtich scheme clear and simple.
    I appreciate all the feedback and replies on this. We've had some discussions with Kapitus - from what we've learned, there was a lapse at the outset of Covid when a lot of parameters changed as with all funders. We've had a good experience working with them outside of this episode so will look to continue that. Not that we agree with the net/renewals policy, but misunderstandings are misunderstandings and thankfully we were able to see where the error came from.

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