What is Commerce Pay? How does it work?

Commerce Pay is flexible funding with payment terms based on your company’s revenue.

You will receive a lump sum of money and, in return, agree to pay us a percentage of your marketplace transfers until the total amount, plus a fee, is repaid.

This means your repayments are directly tied to your company’s income, making it a flexible and often more accessible way to access funding.

Example Proposal for illustration purposes only:  

Purchase Price (Advance Amount): $ 100,000

Advance Fee Rate: 6%

Advance Fee Amount: $ 6,000

Origination Fee Rate: 1%

Origination Fee Amount: $ 1,000

Total Transaction: $ 106,000

Disbursement Amount: $ 99,000

Percentage of Marketplace Transfers: 20%

Purchase Price (Advance Amount): This is the total amount of future receipts we are purchasing from you. It is also the amount used to calculate your fees and repayment terms.

Advance Fee Rate: The fee we charge for using Commerce Pay, displayed as a percentage.

Advance Fee Amount: The dollar value of the Advance Fee, based on the Advance Fee Rate.

Origination Fee Rate: This is a one-time fee, shown as a percentage of your Advance Amount, charged for setting up your funding agreement. It covers the cost of evaluating your application, preparing your advance, and processing the disbursement.

Origination Fee Amount: The dollar value of the Origination Fee, based on the Origination Fee Rate. It is deducted from the Advance Amount at the time of funding.

Total Transaction: The total amount to be repaid by you.

Disbursement Amount: This is the net amount deposited into your designated business bank account at the time of funding. It is calculated as the Purchase Price minus the Origination Fee.

Percentage of Marketplace Transfers: You will pay us 20% of each marketplace transfer you receive until the Total Transaction is repaid. We identify deposits from all Marketplace platforms that are connected to your collection account and collect the agreed percentage from those payouts.

If you have any further questions, please reach out to us at customerservice@sellersfi.com.