[Capital Stack]

You know its a funny thing how this industry is evolving in the few years Ive been fortunate to see. First I saw conventional guys say the starter program was the bane of the industry only to see all the conventional players roll out their own starter. Then it was the origination fee's the brokers are charging which now a few years in are starting to become adopted like other industries. Today you even have MCA lenders (loan product) that have addendum to their merchant agreements for the brokers origination to be deducted from funding proceeds and paid direct to broker. Again like other industry's that are more mature.

And now the dailystacker discussion is the present hot topic. Who knows where this business is headed. Stacking might be a norm several years from now like starters.

We the MCA people need to act with the industry , merchant, and the whole in mind. Your always going to have some idiot ass......that will do really unscrupulous things in emerging business they'll end up getting weed out.

lol, but wait I thought the name of this forum was dailystacker.com?

[nwarshaw]

Seems like there are two types of fees being talked about here.

Pre Funding/Application Fee and Post Funding/service, closing, boarding, management fee.

The part that is illegal seems to be the pre funding fees, but even the SBA has a form that allows you to charge the borrower up to 2% direct for a consulting fee, on top of the fee the bank will give you for the referral. The document is signed by the borrow and part of the closing doc, and then it is up to you to collect that consulting fee direct.

The biggest issue is that a pre funding fee is/was associated with bad actors making promises of funding that may not actually come to fruition.
You could charge a post funding fee as long as the proper disclosure happens up front and is documented properly.

* I am no lawyer, my 2 cents, consult a lawyer before charging any fees*