[Capital Stack]

I agree with Jared there is nothing illegal about it. Many other industries a DD applies why couldn't it here. But don't confuse this statement with whether I believe its a good idea.

Is it? I know big companies in the space who charge a $2,500 DD fee which is included in their LOI to the merchant.

[Sean Cash]

I agree with Jared there is nothing illegal about it. Many other industries a DD applies why couldn't it here. But don't confuse this statement with whether I believe its a good idea.

It is illegal. The FTC governs this. Many states have laws that overlap the federal law and they specifically mention small business.

https://www.google.com/url?sa=t&rct=...X-4EI1lDrOUaLA

[Capital Stack]

This article doesn't validate any point. If this particular broker had a success fee structure and did not succeed with the expected financing and had a refund clause as a such then he was obligated to do so. But this example of a rogue putz doesn't show anything. But would love to see anything from the FTC regarding governing DD fee's on non regulated products like equipment loans A/R financing commercials mortgages etc..

And again my statement is no way advocating this practice in MCA.

It is illegal. The FTC governs this. Many states have laws that overlap the federal law and they specifically mention small business.

https://www.google.com/url?sa=t&rct=...X-4EI1lDrOUaLA