[Sean Cash]

Many of the larger lenders do it to help debt numbers, increase profitability, or to help subsidize commissions paid out. The larger guys in the industry we are in who do it have low low rates. Others are doing it and have been for a while and calling it other things lol. Platform fee, ACH monitoring fee, etc...... Yes those fees get charged when the loan or advance closes but nevertheless the extra fees are there. Think about this for a second. Merchant A applies to an MCA guy and gets 100k on a 12 month 1.39 and pays 2.5% platform fee and nets 97,500. OR Merchant A goes to Lender A and gets 100k on a 12 month 1.13 and pays $2,500 upfront (refundable if denied). what's better for them? Again, I don't think it's good to do a DD fee or it isn't I'm just explaining what I see out there. I do know companies who have been around since the 1930's who are doing it successfully and have a huge book of clean business. I could also see how it hurts the merchant and ISO upfront possibly.

Jared, I think we're talking about something else. We're talking about writing a check to a broker or funder with the hope that they'll try to get you approved for a loan.

[Jared_Weitz]

Jared, I think we're talking about something else. We're talking about writing a check to a broker or funder with the hope that they'll try to get you approved for a loan.

Yup, I'm talking about writing a check to a lender only for the approval of a loan.