Funder Fees

The fee is 2.499% of the Requested Amount or 2.499% of the merchant last 4 months Revenues Average whichever is less. Funders shall pay this fee exclusively and not the Merchant. Fee will only be implemented when and if at least 50% or greater of the requested amount is bid on. Example, if only 49% of the requested amount is bid on, no funder shall pay any fee and the Merchant shall not receive any funding.

This Fee may be shared in whole or part depending upon the number of offers. The fee of 2.499% is due by one Funder or multiple funders if any. If there are no other Bids, then the winning Funder is obligated to pay the 2.499% if the winning funder’s amount to advance Merchant is 50% of greater of the requested amount. Funders Bids will remain anonymous until Funding amount is either matched or oversubscribed; or no other funders commit to funding other than one Funders bid. Winning Funders shall pay their proportionate percentage of 2.499% of the Requested Funding Amount by the Merchant, or 2.499% of the Merchant last 4 months Revenues Average whichever is less.

Example: Merchant Requested Amount of the Merchant last 4 months Revenues Average is $200,000.

 

   

Percentage Ratio

Fee Due

Last 4 Month Average Revenues

$200,000

100.000%

$4,980

Sum Total of All Winning Funders

$181,000

90.500%

 

Funder 1 Winning Bid

$25,000

13.812%

$688

Funder 2 Winning Bid

$25,000

13.812%

$688

Funder 3 Winning Bid

$10,000

5.525%

$275

Funder 4 Winning Bid

$15,000

8.287%

$413

Funder 5 Winning Bid

$11,000

6.077%

$303

Funder 6 Winning Bid

$10,000

5.525%

$275

Funder 7 Winning Bid

$15,000

8.287%

$413

Funder 8 Winning Bid

$20,000

11.050%

$550

Funder 9 Winning Bid

$20,000

11.050%

$550

Funder 10 Winning Bid

$10,000

5.525%

$275

Funder 11 Winning Bid

$10,000

5.525%

$275

Funder 12 Winning Bid

$10,000

5.525%

$275

     

$4,980

 

Requested Amount (Recent 4 Months Banking Statements + Recent 4 Merchant Processing Statements /4) = $200,000

_____________________________________________________________________________________

Fee is 2.499% of the Requested Funding Amount by the Merchant, or 2.499% of the Merchant last 4 months Revenues Average whichever is less.

Whichever is less.

FWB1=Funders1 Winning $Bid

FWB2=Funders2 Winning $Bid

FWB3=Funders3 Winning $Bid

FWBX=Additional Funders Winning Bid

SUMT= Sum Total of All Funders Winning Bids

4MAMS = 4 Months Average Merchant Gross Statements

MERC = (Merchant Requested Funding Amount * 2.499%)

UFF = Up Front Fee (2.499% * 4MAMAS)

Each Funder Fee = FWB1/SUMT X (MERC) 

 

Example 2: Requested Amount by the Merchant is $50,000.

  

   

Percentage Ratio

Fee Due

Request Amount by Merchant

$50,000

100.000%

$1,245

Sum Total of All Winning Funders

$50,000

100.000%

 

Funder 1 Winning Bid

$25,000

50.000%

$623

Funder 2 Winning Bid

$25,000

50.000%

$623

 

 Refunds:

Fee for funding amount is not refundable

 

 

Credits:

Credit may be issued if Merchant is found to have material Judgements over 30% of the requested amount, which was not stated or known at the commencement of bidding. Note: If other funders continue to fund the merchant regardless of the above statement and Funder does not request Funds Fully paid back entirely within 7 days, fee shall be final. Credit will be issued in full if there are material judgements over 30% of the requested amount, and there is only one winning bidder. Temporary Credit will be issued to your account immediately and finalized after 90 days.

If any refund credits are issued merchant must remain unfunded for 90 days. If merchant becomes fundable within 90 days by “any other Funder”, Fee is considered earned and no credit will be issued. A common example of this is a Merchant who is behind on his rent for 3 months. We understand that all Merchant require detailed full background checks from Funders for liability purposes. We will immediate remove any listing found to have material financial disclosures brought to our attention. Merchant may be relisted on a case-by-case basis.

Example 3:

The amount of rent past due is $30,000 and the Winning Advance amounts total $100,000. Funder(s) still may still elect to advance merchant a lesser amount (subtracting the liability from the advance amount). Thus, instead of Funder(s) advancing $100,000 Funders may advance Merchant a reduced amount of $70,000 after subtraction of the newly found liabilities.

Funders who elect to reduce the amount of Advance will pay their proportionate Fee on the newly reduced amount. Example: If Funder A, and Funder B agreed to Fund Merchant $100,000 but landlord verification showed a liability of ($30,000, 30% of Requested Amount) Funder A may elect to fund only $35,000 and Funder B may elect to cancel entirely. Fees will still be 2.499% divided by two for each merchant since Merchant was fundable by Funder A and the newly found liability was not greater than 30%. Basically, If Merchant is funded you will pay your proportionate fee.

 

Over Subscription

Example: An oversubscribed offer amount for a merchant seeking funding of 100K has offers exceeding 1x that amount. The Winning Funders that bid the lowest payback amounts for the highest durations will each share in the above referenced offers and fees.

For Complete Funder Fees Click Here

For the Excel File of Fee Formula Click Here