What is a Take Rate?

Agency take rate is an additional percentage added to the base APR to your insured's finance agreement that is paid to your agency. This allows your agency to participate in the upside of the finance agreement.

By adding a take rate, your Agency will earn additional revenue when an insured chooses to finance their programs.

How do I add a Take Rate?

Admins and accountants in your organization's workspace can add a take rate on top of the base rate used to calculate your insured's APR for financed policies.

This feature can be enabled via the Settings > Take Rate page here:

https://dashboard.useascend.com/settings/take-rate

1. Enter the desired Take Rate

2. Click Save Changes at the bottom of the page to save

Frequently Asked Questions

How do custom loan terms affect take rate

When will my agency be paid for their take rate on a financed program?

• Take rate payouts are issued on the 15th of each month for all financed programs since the 15th of the previous month.

What is the maximum take rate that can be added?

• There are state-mandated limits on rates for finance agreements that Ascend complies with. The take rate will be limited or removed when the Ascend base rate + take rate exceed the state's limits.

• You will see a warning note on the program's financing terms details notifying you when the take rate is being reduced due to a state limit. Here is an example of the warning message:

Additionally, take rates are not allowed in the following states:

• AL

• AZ

• CT

• DC

• KY

• MD

• MA (only allowed for commercial)

• MI

• NV

• NM

• SC

• TX (only allowed for commercial)

• VA

• WA

• WI

Will my customer see our take rate?

• Your customer will not see a breakdown of base rates and adjustments you make. Your adjustments will be baked directly into the APR.

Unearned Take Rate for Cancelled Policies

When your insured signs the PFA and makes their downpayment, take rate is calculated and paid out to your agency based on the assumption that the full loan cycle will play out as intended.

So what happens if the loan is cancelled mid-term, and the full interest is not earned?

• The unearned take rate will be the fraction of the take rate payout for the loan based on the number of unpaid payments.

• For example, if there are 10 payments on the loan and the customer paid 3 of them, we will collect back 7/10 (70%) of the take rate payout.

The policy's actual cancellation date does not affect the unearned take rate, as the loan and the policy exist separately from the other.

Unearned Take Rate: How & When is it returned?

When

Ascend will collect the unearned take rate 60 days after the program was canceled if it has not been reinstated.

How

Ascend will auto-deduct unearned take rates from your agency's next monthly take rate payout. Unearned take rate will not be deducted from the commission payout.

If the following month's take rate payout is lower in amount than what is owed in unearned take rate, your agency will need to manually pay that outstanding balance using a payment link in a similar process as unearned commission or other funds being sent from your agency to Ascend.

Frequently Asked Questions

How is take rate amount calculated?

Take rate is calculated as:

(Take Rate / (Base Rate + Take Rate)) * Finance Charge)

How do we calculate the unearned take rate?

The unearned take rate will be the fraction of the take rate payout for the loan based on the number of unpaid payments.

For example, if there are 10 payments on the loan and the customer paid 3 of them, we will collect back 7/10 (70%) of the take rate payout.

The policy's actual cancellation date does not affect the unearned take rate, as the loan and the policy exist separately from the other.

Will my take rate be affected if my insured pays off their loan early?

No, on those cases, your agency will keep the full take rate on the program.

Will unearned take rate be deducted from my commission payout?

Unearned take rate will not be deducted from the commission payout. Ascend will auto-deduct unearned take rates from your agency's next monthly take rate payout.

If the following month's take rate payout is lower in amount than what is owed in unearned take rate, your agency will need to manually pay that outstanding balance using a payment link in a similar process as unearned commission or other funds being sent from your agency to Ascend.

Where can I view outstanding balances owed by my agency back to Ascend?

Outstanding unearned take rate will be viewable on the Accounting page's Outstanding balance tab here. Set the Reason filter to Unearned take rate to view all your agency's outstanding balance of this kind:

What if the loan gets reinstated?

If the program is reinstated before 60 days after cancelation, nothing should happen, we will not have collected any unearned take rates.

If the program was reinstated on or after 60 days after cancelation and unearned take rate has been returned to Ascend by your agency, our team will pay back out the take rate in the following month's take rate payout.

Can I choose to manually pay my take rate instead of auto-deducting?

Yes, please reach out to our Support team at [email protected] to adjust the auto-deduction settings.

Contact Us

Need more help? Contact us at [email protected] for more help.