When syndicating a deal to other investors, there will often be a management fee associated. MCA Suite provides a couple of options that define when those fees should be collected.
Concurrent: A percentage of the fee is collected with each transaction. Whenever a payment is made by the Merchant, the Investor will receive part of that payment proportionate to his original investment minus a proportionate management fee that the primary Funder will collect.
Backend: No fee is collected until the investor's principal amount is paid back. Once the investor's principal is paid back, the fee will be collected on the remaining amount at a rate equal to the management fee / remaining amount.
Investor A invests $10,000 on a deal with a $12,000 payback and a $1,200 management fee (or 10% fee).
If the merchant makes a $1,000 payment and a concurrent collection type is selected, Investor A will receive $900 and $100 will be collected by the primary Funder as a management fee.
If, instead, a backend collection type is selected, Investor A will receive $1,000 and the Funder will not collect any management fee. However, once Investor A has collected his principal, $10,000, each payment made by the merchant beyond that amount will have 60% deducted for the management fee since the management fee is $1,200 and there is $2,000 outstanding that needs to be repaid ($1,200 / $2,000 = 60%). If the Merchant's next payment is for $1,000, Investor A will only receive $400 and the remaining $600 will be collected by the primary Funder as part of the management fee.