Recording and comparing offers

Offers arrive in different shapes: one lender quotes a factor and a daily payment, another a weekly payment and an origination fee. Putting them in one table, worked out the same way, lets you present them honestly and lets the merchant compare what they actually receive and what it costs.

1. 1On the deal's Lenders tab, click Add offer on the lender's submission row (or Add offer in Offers).
2. 2Enter the Advance amount and the Factor (sell rate). If you know it, add the Buy rate: the gap is your upsell.
3. 3Add the Origination fee, Other fees and any Payoffs this advance must clear.
4. 4Set the Payment frequency and either the term in months or the number of payments.
5. 5Check Base commission (pre-filled from the lender) and Commission on. Add Offer expires if the lender gave a date.
6. 6Read the panel as you type: payback, net to merchant, payment, estimated term, cost of capital and the combined holdback with existing payments. Click Add offer.

Adding the first offer marks that submission Approved and moves the deal to Offers In.

A bakery with about $62,000 a month in true revenue gets two offers. Lender A: $40,000 at 1.32, daily payments over 6 months, 3% origination fee. Lender B: $45,000 at 1.40, weekly payments over 8 months, no fee.

A: payback = 40,000 x 1.32 = $52,800; fee = 40,000 x 3% = $1,200; net = $38,800
A: cost of capital = 52,800 - 38,800 = $14,000
B: payback = 45,000 x 1.40 = $63,000; net = $45,000
B: cost of capital = 63,000 - 45,000 = $18,000

B puts $6,200 more in the merchant's hands but costs $4,000 more and runs two months longer. Neither is "best" in the abstract: the table lets the merchant choose with the numbers in front of them. Sort the Offers table by Most net to merchant or Lowest cost to put the trade-off on screen.

1. 1Open the offer's menu and click Accept offer, then confirm.
2. 2The other open offers are marked Superseded and the deal moves to Offer Accepted - Preparing Contracts.
3. 3Under the accepted offer, track the lender's contract with Mark sent, Mark viewed and Mark signed. Sent moves the deal to Merchant Reviewing Contracts; signed moves it to Contracts Signed - Final Stips.

E-signing contracts from the deal is Coming soon. Today you track the lender's own contract here.