Skip to main content
#
Shaw Merchant Group

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Top Articles

Thursday, 11 June 2020
Start a career in the merchant services sales industry. Start selling merchant accounts and credit card processing services and POS equipment.
Tuesday, 26 May 2020
Welcome to the largest site to find merchant services careers and credit card processing careers. Get into merchant services sales and credit card pro
Tuesday, 29 September 2020
Become a merchant cash advance agent and start selling merchant cash advance. Join the best merchant cash advance business opportunity.
Sunday, 31 May 2020
Refer merchant cash advances to our merchant cash advance company and get commissions for selling merchant cash advances.
Sunday, 18 April 2021
learn more about how to become a payment facilitator, join NAB and become the best payment facilitator company. Partner up with a payment facilitator,
Thursday, 28 January 2021
merchant portfolios for sale, merchant services residual buyout, merchant account portfolio buyout, merchant portfolio valuation, merchant portfolio a
Friday, 02 April 2021
White-Label Payment Service Providers and how products like white label payment gateways, mobile payment processing, build your own ISO brand.
Thursday, 01 April 2021
If you are looking for the best credit card processing business opportunity its here with North American Bancard Agent Program.
Thursday, 01 April 2021
Become a payment processor with North American Bancard ISO Program. Payment processing agents or credit card processor ISOs has huge commissions
Saturday, 03 April 2021
Become a merchant services agent, merchant account reseller, selling merchant services, merchant account portfolio buyout, Sell merchant account portf
Thursday, 28 May 2020
How do I get leads for merchant cash advance. Generate merchant cash advance leads
Monday, 17 May 2021
North American Bancard Agent Program, North American Bancard ISO Program, Merchant Services Agent Program, Credit Card Processing Agent Program
Wednesday, 22 September 2021
Top 5 Credit Card Processing Agent Programs, Credit Card Processing ISO Programs, Merchant Services Agent Programs, ISO Sales Partners, Merchant ISO
Thursday, 27 May 2021
how much money can you make selling merchant services, merchant services agent, credit card processing sales commission
Thursday, 27 May 2021
start a merchant services company, start a business selling merchant services, start my own merchant services company, best merchant services company
Wednesday, 26 May 2021
Learn how to become a successful credit card processing sales agent and a successful merchant services sales agent. Details on selling merchants.
Sunday, 23 May 2021
Learn the steps to become a registered ISO for merchant services. Ours merchant services iso or credit card processing iso program is the best in the

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Making Money Selling Merchant Cash Advances as a Broker
Monday, January 25 2021

When most sales companies get into selling merchant cash advances, they concentrate on logistical concerns. They study what the market looks like, and try to determine how they're going to supply what it needs. From there, they concentrate on making as much commission as possible from their deals. This isn't a bad place to start, of course, but it's far from the whole story. Since the market is constantly changing, there's more to selling merchant cash advances these days than simply making commissions.

Sales agents and brokers actually have a huge role in these dealings and provide an important service to companies that fund merchant cash advances. Since their role might seem a bit vague to you at first, let's explain how a deal like this works, and then you might see the kind of value that they bring to this process:

1.) A merchant is contacted / a merchant contacts the sales company. This can happen a few different ways. A sales organization may follow through with a lead and call the merchant, or the merchant may contact the company after seeing information about the opportunity.

2.) The merchant will have to fill out an application. In addition to the application that will ask for basic information, the merchant will also have to send in paperwork such as bank statements.

3.) The sales company will continue to contact the merchant until he has filed the paperwork.

4.) The sales company will decide which provider should fund this particular merchant.

5.) The sales company will then send this information to the provider for evaluation.

6.) The provider will send their approval and conditions back to the sales company.

7.) Sales representatives then explain these conditions to the merchants.

8.) The merchant decides to take the offer.

9.) The sales company asks for the contract from the provider.

10.) The sales company gives the merchant the contract to sign and any other relevant paperwork.

11.) The sales company sends all of this paperwork back to the provider.

12.) The provider ties up any loose bureaucratic ends and then sends the money to the merchant electronically.

13.) The sales company is paid for the deal.

Clearly, sales companies play a significant role in most of these transactions. They serve as an important “middleman” that helps the provider and the merchant understand each other. As the market for merchant cash advances increases, more opportunity for both business owners and funders will arise over time.

Let's change gears a bit though, and take a look at what this means for the bigger picture of being a broker.

Supposing that nothing radical changes in this market, more and more brokers will tend to materialize and this will flood the supply side, which will cause most brokers to face a loss in revenue. Indeed, as a market grows and there is more demand, there is more overall money to be spent on brokers, but the “pie” will be divided into much thinner “slices” between them. In other words, being a broker will be less lucrative on an individual level. Brokers will find themselves working longer hours for less reward, and funding companies will continue to make more money.

In a case like this, you might be able to carry on for a time, trying to make as much money as you can in spite of the increasingly saturated broker's market. However, it's getting harder to build a brokerage company if your only source of income is commissions. You are much better off if you invest in the business yourself and partially fund these loans with your own money. Instead of wasting your time chasing more leads, why not make every lead generate more income?

You can try a few different techniques for making money in this business using your own cash, and we'll discuss some of those basic strategies in a moment. First, let's talk about a little bit of history:

In the first decade of the 21st century, providers decided to bring sales companies into their dealings and allow them to partially fund these cash advances. They call this activity “syndication.” It quickly became obvious that syndication was a good move because providers found that having brokers vet their merchants beforehand led to higher quality deals that were less likely to default. The broker is there to make sure the deal goes through properly, and normally he will take care of the customer very well because his own money is on the line. Brokers helped create a long-term relationship between merchants and providers. This helped funders to potentially make more money.

Originally, syndication wasn't as common, and only a few providers allowed it. Nowadays, many companies use sales organizations in this way. When you're new in this business, put your energy into finding a good provider which will allow you to put your own money on the line.

Strategies for Making Good Money Selling Merchant Cash Advances

Let's look at some concrete numbers so that you can get a feel for how you can make money in this industry. Keep these rough stats in mind:

  • Deals vary in terms of amount, but the average is around 35,000 dollars.
  • Factor is 1.39 on average.
  • You can expect the average commission to be around 8 points

So now let's play with some numbers and come to a few conclusions:

From Commissions: If you fund 100 deals, with an average commission of $3,000 per deal, you can expect to earn $300,000.

Rolling Your Commissions Into the Deal: If you fund 100 deals, with an average commission of $3,000, multiplied by a factor of 1.39, then you can expect $417,000. 

Co-funding: If you co-fund 100 deals of a total amount of $2,000,000 from your own pocket, multiplied by 1.39, then subtract the original $2,000,000, then you are left with $780,000.

Add to that an average commission of $1,500 for 100 deals, and you also have $150,000 in commission.

Total = $930,000.

You can make substantial money even when you're not taking on all of the risk. In the last example above, you only funded half of the deal with your own money, but you still made some money on both sides—commission for the 50% that you did not fund and a good ROI on the half that you did.

So you don't have to give up the idea of commissions altogether. Providers that allow you to fund part of the deal will also allow you to collect commission. This is the smart way to make money in this business, because as you can clearly see, you stand to make many times more than if you relied on just commission alone. This is a great way to grow your business even if you're not acquiring many new customers.

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Featured Video

Featured Video

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Saturday, 03 April 2021
Merchant services sales training is important to help you learn the ropes about payment processing business and become a successful merchant services
Thursday, 11 June 2020
Start a career in the merchant services sales industry. Start selling merchant accounts and credit card processing services and POS equipment.
Tuesday, 26 May 2020
Welcome to the largest site to find merchant services careers and credit card processing careers. Get into merchant services sales and credit card pro
Tuesday, 29 September 2020
Become a merchant cash advance agent and start selling merchant cash advance. Join the best merchant cash advance business opportunity.
Sunday, 31 May 2020
Refer merchant cash advances to our merchant cash advance company and get commissions for selling merchant cash advances.
Sunday, 24 May 2020
As part of our Merchant Services Sales Partner Program our Credit Card Processing Agents can Sell Merchant Accounts. Join our Sales Partner Programs
Thursday, 13 May 2021
Looking for the best Merchant Account Affiliate Program. Find the top Credit Card Processing Affiliate Programs with North American Bancard.
Monday, 29 June 2020
Build lifelong relationships with our Cash Discount Agent Program. Agents and ISOs looking for the best cash discount program to sell to merchants.
Tuesday, 09 June 2020
Become a Cash Discount Program ISO with North American Bancard. Sell Cash Discounting to merchants and offer a cash discount reward program.
Thursday, 09 July 2020
Selling merchant accounts as a successful credit card processing sales agent is easy with North American Bancard Agent Program. Sell merchant services
Tuesday, 19 May 2020
Learn the truth about merchant services and credit card processing sales and how you can become a merchant account sales representative.
Thursday, 18 February 2021
Become a merchant services consultant, merchant account consulting, credit card processing consulting, merchant services consulting, credit card proce
Thursday, 01 April 2021
Selling Merchant Account and Selling Credit Card Processing is one of the most lucrative sales jobs. Become a Merchant Services Sales Agent.
Tuesday, 16 February 2021
Start selling merchant accounts from home and selling credit card processing from home. Become a merchant account salesperson.
Saturday, 23 May 2020
Topics include high risk merchant processors, high risk credit card processors, high risk merchant services, high risk merchant accounts and more
Thursday, 28 May 2020
How do I get leads for merchant cash advance. Generate merchant cash advance leads
Monday, 17 May 2021
North American Bancard Agent Program, North American Bancard ISO Program, Merchant Services Agent Program, Credit Card Processing Agent Program
Saturday, 03 April 2021
Become a merchant services agent, merchant account reseller, selling merchant services, merchant account portfolio buyout, Sell merchant account portf
Thursday, 01 April 2021
Become a payment processor with North American Bancard ISO Program. Payment processing agents or credit card processor ISOs has huge commissions
Friday, 02 April 2021
White-Label Payment Service Providers and how products like white label payment gateways, mobile payment processing, build your own ISO brand.
Thursday, 28 January 2021
merchant portfolios for sale, merchant services residual buyout, merchant account portfolio buyout, merchant portfolio valuation, merchant portfolio a
Sunday, 18 April 2021
learn more about how to become a payment facilitator, join NAB and become the best payment facilitator company. Partner up with a payment facilitator,
Sunday, 02 May 2021
Become a merchant services provider and offer credit card processing, merchant services and other payment processing services to merchant that want to
Tuesday, 29 September 2020
Become a merchant cash advance agent and start selling merchant cash advance. Join the best merchant cash advance business opportunity.
Sunday, 31 May 2020
Refer merchant cash advances to our merchant cash advance company and get commissions for selling merchant cash advances.

Helpful Links

Sunday, 02 May 2021
Become a merchant services provider and offer credit card processing, merchant services and other payment processing services to merchant that want to
Sunday, 24 May 2020
As part of our Merchant Services Sales Partner Program our Credit Card Processing Agents can Sell Merchant Accounts. Join our Sales Partner Programs
Monday, 10 May 2021
Join our Merchant Account Reseller Program where you get huge bonuses for selling credit card processing and merchant services.
Tuesday, 29 September 2020
Become a merchant cash advance agent and start selling merchant cash advance deals today. Our merchant cash advance ISO program is the best in the cou
Wednesday, 03 June 2020
Selling merchant cash advances are lucrative and cash help small businesses by becoming a merchant cash advance agent or ISO. Join our program.
Thursday, 13 May 2021
Looking for the best Merchant Account Affiliate Program. Find the top Credit Card Processing Affiliate Programs with North American Bancard.
Monday, 29 June 2020
Build lifelong relationships with our Cash Discount Agent Program. Agents and ISOs looking for the best cash discount program to sell to merchants.
Tuesday, 09 June 2020
Become a Cash Discount Program ISO with North American Bancard. Sell Cash Discounting to merchants and offer a cash discount reward program.
Thursday, 09 July 2020
Selling merchant accounts as a successful credit card processing sales agent is easy with North American Bancard Agent Program. Sell merchant services
Tuesday, 19 May 2020
Learn the truth about merchant services and credit card processing sales and how you can become a merchant account sales representative.
Thursday, 18 February 2021
Become a merchant services consultant, merchant account consulting, credit card processing consulting, merchant services consulting, credit card proce
Thursday, 01 April 2021
Selling Merchant Account and Selling Credit Card Processing is one of the most lucrative sales jobs. Become a Merchant Services Sales Agent.
Tuesday, 16 February 2021
Start selling merchant accounts from home and selling credit card processing from home. Become a merchant account salesperson.
Saturday, 23 May 2020
Topics include high risk merchant processors, high risk credit card processors, high risk merchant services, high risk merchant accounts and more
    Disclaimer

    © Shaw Merchant Group, LLC. Our goal is to gather accurate, updated information and assist you in your research. We recommended that you check with your service provider or financial institution directly and get independent financial advice before making any commitments or business decisions. 

    Company logos, names, and trademarks mentioned on this site belong to their respective owners.

    All merchant related services and products are referred to North American Bancard for first right of refusal. All information generated on this site is shared with NAB. North American Bancard is a registered ISO of Wells Fargo Bank N.A., Walnut Creek CA, of BMO Harris N.A., Chicage, IL and The Bancorp, Philadelphia, PA.