Cash Advance companies pay anywhere from 4% of the Cash Advance amount for the much less common but cheaper loans (1.12) and up to approximately 14% of the pay-back amount on the more typical and more expensive deals which cost 1.35 to 1.45 to the biggest sales organizations.
The amount paid back on a cash advance of $10,000 is anywhere from $13,500 to $14,500 on an advance which is paid back over just 6 months.
Currently the most common amount paid by Cash Advance companies to sales organizations is approximately 10% of the pay-back amount, and structured so that 8% is paid upfront at the time that the merchant receives the money, and 2% is paid as a residual payment as the merchant pays back the loan successfully.
In house agents (usually working on a 1099 although they should be W2's) working for a sales organization usually see 1.5% to 2.5% of the pay-back amount as a commission depending on the funding volume or expiriance of the agent.
Outside agents that cover their own marketing expenses and submit deals to a sales organization are usually paid up to 7% of the pay-back amount as a commission.
Agents make more money by pushing new processing terminal leases and closing costs.
How much commission do cash advance companies pay brokers & partners?
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