Use this guide to understand when you can receive advance instalments of upfront commissions, how they are calculated, and what to expect when adjustments or clawbacks occur.
How advance payments work
Advance payments give you early access to upfront commission that has already been received and allocated to your partner group. These instalments are deducted from your final monthly payment and shown on your Recipient Created Tax Invoice (RCTI).
Note: Not all members who opt in will receive an instalment every week.
When instalments are paid
Instalments are normally paid each Monday unless:
Monday is a Victorian public holiday (paid the next business day)
Monday falls within two working days of a commission batch (no instalment that week)
Planned instalment dates appear in the payment calendar in the Wiki.
How your instalment is calculated
Your instalment is the total upfront commission received and allocated before close of business the Friday before, multiplied by your Instalment Percentage, then rounded down to the nearest $100.
Instalments are only paid when the calculated amount is at least $500.
Example
Week 1
$4,500 up-front commission received
Instalment Percentage: 60%
Instalment paid: $2,700
Week 2
Additional $2,300 received (total $6,800)
Cumulative instalment: $4,000
Week 2 instalment: $1,300
Week 3 – Commission batch
Additional $3,200 received (total $10,000)
Actual payee splits: $3,500
Final payment: $2,500
Important:
Asset Finance commissions are excluded because they are paid daily.
Trail commission is excluded to minimise clawback risk.
Understanding your Instalment Percentage
Your Instalment Percentage represents the portion of your up-front commission used to calculate instalments. It is determined by:
Your commission plan
Your typical payee split behavior
Historic payment trends in your partner group
Examples:
Maximiser plan and no regular splits → 100%
Variable plan with 20% average splits → 80%
You can view your percentage in the Instalments section of the Membership Centre.
Note: Your actual monthly splits may not match your Instalment Percentage. This does not affect your final payment.
How advance payments are recovered
Instalments are deducted from your monthly commission payment.
If your partner group does not have enough commission income to cover the instalments:
Excess may be deducted from payees
Remaining amounts will carry forward to future months
Important:
If clawbacks or adjustments cause instalments to exceed your final commission, instalments are suspended until arrears are cleared.
Opt in or out of advance payments
You can opt in or out through the Membership Centre in Mercury. See this article for instructions.
Eligibility rules
Most full members are eligible, but instalments may be prevented or stopped if:
There are compliance concerns
Partner fees or clawbacks are unpaid
A loan book transfer is in progress
Your group has a secured loan against the loan book (for example, a Book Buyers finance arrangement)
Members with Book Buyers finance arrangements are ordinarily ineligible unless they have sufficient commission income after deductions. Contact your Partnership Manager to discuss eligibility.
Note:
If you become ineligible after opting in, instalments stop automatically and resume once eligibility is restored.
Viewing instalments and statements
Your RCTIs in Mercury will show instalments paid.
Instalments do not have their own RCTI because they are prepayments
You will receive a remittance advice email each time an instalment is paid
No statement is available showing the specific commissions used in the calculation
Your monthly RCTI will show the total amount paid, including instalments.
Other considerations
Ordinary commission payment dates do not change
Commission splits still apply and can be updated as normal
Instalments cannot be paid directly to payees
Connective cannot estimate instalment amounts due to lender payment timing differences
Need help?
If you need help understanding how advance payments apply to your commissions, contact your Partnership Manager or email [email protected]