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Can someone explain advance pay to me?


srarifuzzaman

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Posted

Yes exactly, and the sellers pay 13.63% fees. I received this message now… looks like that every sell instead of charge 20% will be charged 40% to give back the loan.

Posted

*** No need to comment explaining this to me - it’s been explained below multiple times! 🙂

Am I reading this right? I just got offered to take part in Fiverr’s advance-pay thing, where you can withdraw money not yet in your balance under the condition that you will pay it back from your future earnings.

But… Fiverr takes 40% of your future earnings instead of 20%??? Is that correct?

As a condition of your participation in the Fiverr Cash Advance Program, you agree to:
Authorize Fiverr, including Fiverr’s Payment Services Providers (as defined in the Fiverr Payment Terms) to deduct, as agreed, the 40% Take Rate from the Future Receivables owed to you in connection with your completed Gigs on the Fiverr Site;

it also says that if I withdraw 5,000 now, I’ll have to pay back 5,681 later. So what’s the 40% about?

I’ve read the fine print but it’s a lot of legal jargon and I don’t really get it.

EDIT Thank you @cynicalking for explaining, this is what I was confused about and it makes sense to me now 🙂

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.
Posted

Don’t do it. Not worth it.

(Is this in the Payment part of the ToS?)

Don’t do it. Not worth it.

Yeah not to be dramatic but I wouldn’t really trust Fiverr with this kind of contract haha! I’m not tempted. I just would like to understand it bc if they’re taking 40% of people’s earnings in exchange for advance pay that’s wild.

I haven’t searched the main ToS for this yet but I’ll prob do that. I found the info I posted in the Terms and Conditions in the advance pay page.

Posted

Sounds sort of like those payday-in-advance businesses that seem to be conveniently located next to tobacco and liquor stores…

Yeah. Seems gross and predatory for me. Some of the decisions Fiverr makes make me really uncomfortable.

Posted

Don’t do it. Not worth it.

Yeah not to be dramatic but I wouldn’t really trust Fiverr with this kind of contract haha! I’m not tempted. I just would like to understand it bc if they’re taking 40% of people’s earnings in exchange for advance pay that’s wild.

I haven’t searched the main ToS for this yet but I’ll prob do that. I found the info I posted in the Terms and Conditions in the advance pay page.

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.

Posted

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.

I would have excepted more cynicism from the cynical king!

Posted

Debt is dumb. This kind of debt is even more foolish.

ALL of us regulars here on the forums have heard EVERY possible story of cancellation, sudden removal of gigs, and plummets in ‘rank’.

This is a terrible, horrible, rotten, no good, very bad idea.

Posted
On 2/16/2021 at 4:21 PM, enunciator said:

I would have excepted more cynicism from the cynical king!

lol, actually my username is from the music band cynic. Big fan lol.

On 2/16/2021 at 4:23 PM, imagination7413 said:

Debt is dumb. This kind of debt is even more foolish.

ALL of us regulars here on the forums have heard EVERY possible story of cancellation, sudden removal of gigs, and plummets in ‘rank’.

This is a terrible, horrible, rotten, no good, very bad idea.

Being from a country with hyperinflation where credit is inexistent, I’m finding it pretty tempting. Don’t find it a bad deal at all.

Posted

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.

However, this is money you already earned. So it’s not credit if it’s already yours.

Posted

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.

However, this is money you already earned. So it’s not credit if it’s already yours.

I’m not following you? They’re giving sellers money in advance, which they have not earned, to be paid back with future earnings from sales. How is it already mine?

Posted

I’m not following you? They’re giving sellers money in advance, which they have not earned, to be paid back with future earnings from sales. How is it already mine?

You’re talking about Early Payout, right?

Posted
On 2/16/2021 at 4:36 PM, donnovan86 said:

You’re talking about Early Payout, right?

No, this is a new feature appearing on the earnings page, named Cash advance.

image.thumb.png.3fa4be73dfdc0cb0bc6ade0c3f3a53ea.png

Anyway, I don’t know if there’s an issue with my account or if they jumped the gun with the new feature, because I cannot check the box to accept the terms and conditions to proceed with the cash advance.

Posted

Anyway, I don’t know if there’s an issue with my account or if they jumped the gun with the new feature, because I cannot check the box to accept the terms and conditions to proceed with the cash advance.

I don’t have that. They just added Early Payout for me today.

Anyway, I don’t see why would you get a loan from Fiverr. I mean, some might, I guess.

Posted

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance. I see it more like credit.

It’s not like they’re taking 40% on top of what they’re “loaning” - it’s being used to pay back the advance.

thanks for explaining, that’s what I was confused about 🙂

Posted

It could work for people who might not get loan in a bank. :thinking:

It would need to be expensive considering the risk.

It would be much clearer if terms are available.

By the way, there´s ToS update February 2021.

Posted

It could work for people who might not get loan in a bank. :thinking:

It would need to be expensive considering the risk.

It would be much clearer if terms are available.

By the way, there´s ToS update February 2021.

It would need to be expensive considering the risk.

It looks expensive, but everything depends on the situation.

You receive $5,000 now, but you have to return $5,681.

So, Fiverr takes the amount of $681 for this service (~12%).

And every time you receive $100 for an order, Fiverr will cut $40 (40%) until you repay $5,681.

Posted

It would need to be expensive considering the risk.

It looks expensive, but everything depends on the situation.

You receive $5,000 now, but you have to return $5,681.

So, Fiverr takes the amount of $681 for this service (~12%).

And every time you receive $100 for an order, Fiverr will cut $40 (40%) until you repay $5,681.

Yeah, this is simple enough for the explanation.

Interest is 13.6% that I am able to calculate. And from each order 40% will be deducted - 20% is their usual fees and 20% is used to repay the loan.

Posted

Yeah, this is simple enough for the explanation.

Interest is 13.6% that I am able to calculate. And from each order 40% will be deducted - 20% is their usual fees and 20% is used to repay the loan.

And from each order 40% will be deducted - 20% is their usual fees and 20% is used to repay the loan.

One correction.

They mention “the pre-tax amount”, so 40% will be taken from cleared funds after deducting 20%.

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