Merchant Cash Advance - EAR - Effective Approval Rate

Merchant Cash Advance sales people have always been very focused on what the commission is their merchant funding company is paying them. What most fail to realize it's not what your sales commission in your contract reads but your effective approval rate (EAR). Some merchant cash advance companies will offer teaser commission rates to get you on board and then you will soon realize they are approving 20 - 25% less deals then most and/or giving merchant's 20-25% less funding compared to other companies. Since commissions are typically based on the payback amount of a merchant cash advance, you can see how this can greatly vary and affect your overall commissions earn. In some cases, your actual commission rate may be up to 20 - 25% less than you think it might be based on these two factors.

Next article, the Merchant Cash Advance Industry - 2007 The Year in Review and Predictions for 2008.