Payday Loan or Commission Advance?
Is There A Difference?
YES! YES! YES!
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PAYDAY LOAN |
COMMISSION ADVANCE (not a loan) |
|
Borrowing money and incurring unsecured debt |
Sale of an asset – not borrowing |
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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) |
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May not be tax deductible |
Tax deductible for business purposes |
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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 |