Alt may offer a cash advance to provide quick liquidity for users consigning their cards for auction. Below is a detailed explanation of how the process works, eligibility criteria, and its relationship to final payouts.
Overview of Cash Advances
A cash advance is an upfront payment provided when you consign your cards to Alt for auction. It is not the final value of your cards but rather a percentage of their estimated value. The final payout is determined by the auction results once the sale concludes.
Key Features:
Quick Liquidity: Receive funds before your sales finalize.
Not Final Value: The advance is based on Alt’s valuation and does not reflect the final sale price.
Repayment from Proceeds: The advance is repaid from the auction proceeds, and any remaining amount is paid to you once the buyer finalizes their payment.
Eligibility and Conditions
To qualify for a cash advance:
Cards must be submitted through Alt’s Snap-to-Sell process or similar consignment methods.
Only cards that are eligible for sale on Alt qualify for a cash advance review.
The individual card or lot must have an evaluated value of $250 or more, otherwise they will not be eligible to receive an advance payment.
Cards must pass quality checks upon arrival at Alt’s vault.
Process for Receiving a Cash Advance
Submit Cards: Use Alt’s Snap-to-Sell feature in the mobile app to submit your cards for evaluation and receive a quote.
Ship Cards: Send your cards to Alt using the provided shipping label or your own method.
Vault Processing: Once the cards arrive at our facility, they are processed, digitized, and listed for auction.
Advance Disbursement: After processing, the cash advance is credited to your Alt account.
Bank Transfer: To transfer the funds to your bank account, set up your payout method within the Banking page in your account. Note that PayPal is not supported.
Relationship Between Cash Advances and Final Payouts
Auction Results Determine Final Payout: The final payout consists of the auction hammer price minus the cash advance and any applicable fees.
Seller Bonuses: Depending on your seller tier, you may receive a bonus percentage on top of the final hammer price for your items.
Example Calculation: - Card value: $1,000 - Cash advance: $700 - Auction hammer price: $1,000 - Seller bonus: 6% ($60) - Final payout: $1,000 + $60 - $700 = $360
Rescheduling Cards With an Active Advance
Once a cash advance has been issued, there are a couple of important things to keep in mind if you're thinking about moving your card(s) to a different auction cycle:
2-cycle limit: Cards with an active advance can only be moved out up to 2 auction cycles from their initial scheduled cycle. If you'd like to push further than that, the associated advance will need to be repaid first.
Live auction window: If your card is already live in an auction and the standard 3-day cancellation request window has passed, it's no longer eligible to be moved to a different cycle.
Frequently Asked Questions
Why might my cash advance offer differ from the estimated value?
A: Cash advances are calculated based on market conditions, liquidity, and demand. They are typically a percentage of the estimated value rather than a full valuation.
What happens if the auction proceeds are less than the cash advance?
A: If the auction proceeds are less than the cash advance, the advance is covered by the sale, and no additional payout is made to you as the seller and you do not owe any of the advance back to Alt.
Can I decline a cash advance offer?
A: Yes, you can decline the offer and request another quotation in the future. Note that market values can change over time.
Are cash advances available for sales on the Fixed Price Exchange?
A: No, cash advances are only available for auction consignments.
How long does it take to receive a cash advance?
A: Once your cards are processed at the vault, it typically takes 1–2 business days for the advance to be credited to your account.
How do I use a cash advance to pay for auction winnings?
A: Once your cards are uploaded and listed for auction, eligible cash advances can be used to partially, or fully pay for auction winnings, if the funds are still held within your Alt account balance. By understanding the cash advance process and its relationship to final payouts, you can make informed decisions when consigning your cards on Alt.