Syndication Best Practices and Notes
- Always add your own company as a participant on every deal. Even if you have no other participants, put your own company as the 100% participant.
- All syndicates must be added as Companies in the Admin tab (with your organization as the parent organization) and MUST have a payee on file.
- This can be done by going to Admin tab -> Companies -> editing a company -> Payees
- Always select “RTR/Payback” next to the servicing fee in the Participation tab of an advance.
- If you are manually adding a syndicate payout transaction, make sure there is an associated payment, and the “Paid To” option is selecting the appropriate syndicate. If the only option is “System account” that means you have not added a payee to the syndicate.
- You can add a user to the Syndicate Company and give the user the “Syndicate Reporting” role (a free role) which will give them access to their deals in the CRM.
- If syndicate payouts are turned on (in Advance Settings -> Syndicates), payout transactions will always be created based on merchant debits (payments) clearing
- If you want pay syndicates outside of our system, but want the reporting in Centrex, go to Advance Settings -> Syndicates, select “Yes” under “auto-clear syndicate payments” and make sure “Other” is selected under “Gateway”
- Centrex will create syndicate payouts for the NET amount of their participation percentage LESS the servicing fee based on each cleared merchant payment.
- For example: if an advance has a $100 daily payment, there are 2 participants (one at 75% and one at 25%), and you are charging a 5% servicing fee to the 25% participant on RTR/Balance – the GROSS payout is $25 (25% of $100), the servicing fee is $1.25 (5% of $25), and the NET payout is $23.75 ($25 - $1.25).
- Syndicates can see this breakdown in the syndicate report
Please reach out to Support@centrexsoftware.com for any questions.