PAYDAY LOANS vs COMMISSION ADVANCES

Payday Loan or Commission Advance?

Is There A Difference?

YES! YES! YES!

 

 

PAYDAY LOAN

 

COMMISSION ADVANCE (not a loan)

 

Borrowing money and incurring

unsecured debt

 

Sale of an asset – not borrowing

 

Huge interest cost: $1000 for

2 months can cost $500+

 

Less than $80 for the same $1000

 

Credit checks done

 

No credit check required

 

Loan based on past earnings and future commissions

 

Purchased based on current commission details

 

Stigma often attached

 

Business building strategy (used by major corporations)

 

May not be tax deductible

 

Tax deductible for business purposes

 

Often must be repaid within 2-4 weeks

 

Transactions closing in up to 5 months

 

Usually limited to a small percentage of commission

 

Purchase up to 90% of net commission