How much will I be paid?
The valuation of a portfolio or residual stream depends on many different factors. We have
developed a program that allows us to quickly determine the value of a portfolio or residual
stream by analyzing the various components that determine the monthly residual. There
are a number of metrics that are used to determine the value of a portfolio. Income attrition
rate, account attrition rate, length of time the portfolio has been in existence, account
concentration, margin earned, and merchant mix are a few of the components that we
review. The purchase price is determined by calculating a multiple of the average monthly
residual and taking into account the factors described above.
What information is needed to perform an analysis and valuation?
Your past twelve months residual reports and a copy of your current ISO Agreement will
provide us with enough information to perform an initial evaluation and present an Offer to
How long does it take you to perform an evaluation and present an Offer?
It usually takes 1-3 business days to perform an analysis and present you with an Offer.
If I accept your Offer, what happens next?
Most ISO Agreements afford the Processor a right of first refusal to purchase the portfolio.
Upon execution of an Offer, you would present the Offer to the Processor for approval. The
Processor has a period of time (usually thirty to sixty days), to either approve the Offer or
purchase the portfolio themselves.
If the Processor agrees to the sale, we will continue with our due diligence process and
begin to prepare the remaining closing documents.
What other information will be reviewed during the due diligence process?
Velocity Funding will perform a lien search and background check on the business and on
the principal(s). We will also review the past two years federal tax returns on either/or the
business and principal(s). If you have Sales Agents, we will review copies of Agreements
between you and the Agents, including any documents outlining potential buyout of the
After the due diligence process is complete, what else needs to occur to close the
We will provide you with the closing documents which include: an Asset Purchase
Agreement, Bill of Sale, Personal Guarantee, and Non-Solicitation Agreement. The
remaining document, an Assignment of Residuals Agreement, is usually provided by the
ISO/Processor. Once all of those documents are fully executed, Velocity Funding will wire
the funds to your designated bank account.
How long does the entire process take?
Each transaction is different, however, most transaction are closed with thirty days of
approval from the ISO/Processor. We have closed transactions in as few as ten days and
have had others take two months. It all depends on the characteristics of the deal.
Are there any restrictions to the type of portfolios that you would accept?
Generally speaking, we prefer to purchase non-liability debit and credit card residual
streams that range from $4,000 per month to $50,000 per month in residual. Much depends
on the portfolio characteristics; however, we would be more than happy to take a look at
Will you switch processing platforms?
NO! THERE WILL BE NO CONVERSIONS. Your merchants will definitely remain on the
same processing platform and with the same ISO/Processor. We will never try to convert
your merchants to a different processing platform.
How can you fund the transaction so quickly?
Our source of funds is readily available and does not require prior approval by a lender. As
a result, we can make the decision on each transaction and turn around a closing very
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