What are the costs to syndicate on the Merchant Marketplace platform?

When you invest on the Merchant Marketplace platform as a syndicate, we are giving you the ability to earn the lion's share of the deal you are investing in. However, there are certain costs associated with bringing these deals to our platform that we share, pro rata with you, the investor.

The first cost is the broker commission. We have many broker partners or ISO partners that send their deals to the Merchant Marketplace so we can fund their clients. These brokers earn a commission for bringing us their clients when the deal funds. You, the investor, will participate in that upfront cost on a pro rata basis. A typical commission paid to the broker can be between 10-15%.

The second cost is called the syndication fee. The syndication fee is the cost to not only bring the deal to the platform, it also covers the costs of underwriting the deal, which entails pulling credit, doing background checks, searching blacklists, social media presence and various other procedures to make certain the deal is a great candidate for funding. Typically, the cost is 2% of the funding amount, however that is subject to change at anytime.

The third and last fee is called the management fee. This fee covers all aspects of servicing the deal until the deal is paid in full.

This fee is collected only when a payment is collected from the merchant. The typical management fee is 3%, however that is subject to change at anytime.

Let's run through a quick example:

While on the Marketplace, you see a deal called Jim's Jet Rocket Rental

Jim's Jet Rocket Rental is looking to get funded $50,000 with a 1.45 factor rate, a 12% broker commission, a term of 6 months payback and you want to invest $1,000 in Jim's company.

Your upfront costs will be $1,000 X 12% broker commission = $120 and $1,000 X 2% syndication fee = $20 Your total upfront costs will be $1000 (funding amount) + $120 (broker commission) + $20 (syndication fee) = Totaling a cost of $1,140 to syndicate in this deal

When Jim pays back his advance in full in 6 months, you would have received $1450, less the 3% syndication fee. This will net you $1,406.50.

Don't forget, you are receiving payments from this business either on a daily or weekly basis, so the compounding effect can make the returns significantly higher.

Just to recap your total cost of $1,140, will earn you a return of $1,406.50.

Investing in Jim's Jet Rocket Rental will have earned a profit of $266.50 or a 23.4% return on your money in just 6 months.

Now that you understand how this works, let's start funding!!!

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