Frequently Asked Questions.
Here are some common questions about Martial Arts’ Studios

How long have the Performance Equity Partners, Inc. experts been offering Martial Arts financing?

Our lending experts have been providing financing to the martial arts industry since 1994 and have purchased over $100 million in student agreements.

What are the benefits of your program – why would I want to use it?

The school will see a dramatic increase in cash flow because you will get your money up front instead of over 2-3 years. Funds from the student agreements are deposited into your school’s checking account within 24 hours. The successful school owner will use the program to open new locations, complete capital improvements, hire employees, or increase marketing efforts.

Am I required to send all of my student agreements to Performance Equity Partners, Inc.?

No. The school can send as many or as few student agreements as they wish. There is no minimum number required.

What determines the grade and the amount of money that goes into my checking account?

The customer’s credit rating determines how likely it is that they will repay the obligation. The better the credit rating, the more money that is immediately available to the school owner. Of the available credit grades, most of the student agreements are purchased at the three highest grades. Less than 5% of the student agreements are not eligible for purchase, typically because the customer’s credit references are not paid in a timely manner.

Is there an application or enrollment fee to join the program?

No – there are no up-front costs to the school owner and there are no hidden fees.

How do I sign up?

The first step is to tell us about you and your school by completing our information forms. Then we complete an enrollment agreement that among other things details how the grading system works and when funds are available to you from your school’s reserve.

Will this program cost me more than a typical monthly billing program?

That depends on your billing company; however with Performance Equity Partners, Inc.’s program you are getting a large portion of the funds up front. For a customer with good credit, the funds made available by Performance Equity Partners, Inc. in 24 hours could be comparable to funds received over 16-22 months from a billing company.

This all sounds great, but how much does this cost me?

The student agreements are processed on our system like any other installment loan. The student agreement will state a 0% APR, so we will discount the student agreement 5% per year to allow for interest. This way you do not have to sell an APR to the customer. The only other charge is a flat fee of $99, $199, $299 (for 1, 2, 3, year student agreements respectively).

How do I get the funds for student agreements that are purchased?

Funds are deposited into your checking account within 24 hours of receiving the original contract. The school is faxed a funding worksheet that provides detail on the exact dollars deposited. Funds held in reserve by Performance Equity Partners, Inc. are owned by the school and are used to process approved cancellations and seriously delinquent accounts.

How do I get money from the reserve?

Every January and July we distribute excess reserve funds to eligible schools. The available amount varies with each school based on their level of activity with the program, the strength of the school owner and our experience with student agreements already purchased. Our intent is to distribute as much money as possible so the school owner will benefit the most from the program.

Why is money held in reserve?

These amounts are used for an approved cancellation due to a disability, relocation by the customer, or if an account reaches a 90 day delinquency status. The school is always involved in this process.

What do you do if a payment is late?

Consistent, professional phone follow up is one of the keys to our success. Our collectors focus entirely on the martial arts accounts. For the entire country, only 5 to 6% of the total accounts are 30 days or more delinquent! We have found that customers are more likely to pay us because we are a reputable lender.

Do you offer ACH payments?

Performance Equity Partners, Inc. does allow you to take advantage of ACH processing through a checking account at no extra charge to the school. If the customer wants to mail payments we will send them a monthly statement.

Is there a minimum student agreement amount or monthly term that Performance Equity Partners, Inc. will accept?

We prefer student agreements of at least $1,000 and no more than $7,500. Student agreements can range anywhere from a 12 to 36 month term (24 months maximum in Illinois).

Can I use my own contract forms?

We are an experienced licensed lender who is purchasing student agreements from your school. The forms must comply with various regulations that may not apply if the student agreement was going to remain at the school. Performance Equity Partners, Inc. has student agreements that have been prepared by our attorney who regularly updates the forms to conform with state and federal laws.

Please call Performance Equity Partners, Inc. with any other questions that you may have!

You can also check out how the program works and what others have to say about the Performance Equity Partners, Inc. program by reading customer testimonials. If you’re ready to get started, print our forms, fill them out completely, sign them, and fax them to us at (708) 478-6568. We will contact you after we have received and reviewed the forms.

The forms are in portable document format (pdf). In order to access and print the PDF documents, you must have the Adobe Acrobat Reader software installed on your computer. This small software program is available free from Adobe Systems, Inc.

Performance Equity Partners

Tinley Park, IL 60477

toll free

(877) 334-3606

Our Location

PEP Lending

Illinois Residential Mortgage Licensee, MB.6760914

General NMLS Lic. #296804

For licensing information, go to: www.nmlsconsumeraccess.org

Illinois Department of Financial and Professional Regulation, Division of Banking, 100 W. Randolph, Suite 900, Chicago, IL 60601