Results 1 to 7 of 7
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12-01-2017, 02:32 PM #1
- Join Date
- Dec 2013
- Posts
- 20
Question
A tricky one for Friday afternoon:
Which bank(s) or Credit Union(s) can work with non-regulated brokers (non-licensed - basically all or most of us) to offer:
a. revolving business lines of credit
b. account receivable-backed lines of credit
Happy weekend!
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12-01-2017, 02:42 PM #2
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
Banks/Credit Unions can accept referrals from Consultants and/or ISO's. You need to have a consulting engagement in placement with your client to pay your a success fee.
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12-01-2017, 04:59 PM #3
- Join Date
- Oct 2016
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- 4,318
Most banks accept referrals, although few will provide referral fees - and those tend to be for SBA-enhanced loans. So like Richard said, you're going to want to setup a fee agreement with the borrower before referring.
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12-01-2017, 08:54 PM #4
- Join Date
- May 2017
- Posts
- 350
What kind of lawyer would you need to get to be able to have make the right documents to protect yourself with the merchant (to not go around you)?
I know a couple of bankers (branch managers) i have good relationships with that have solicited me to do business sometimes (send them a paper stuff).
How much can you charge on a fee?
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12-01-2017, 10:17 PM #5
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- Oct 2016
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- 4,318
You just need an exclusivity agreement. With conventional stuff I generally charge 1-2%. Same with SBAs (if the lender - like Wells - doesn't provide referral fees). Commercial real estate I may get greedier at times.
Some brokers will charge an additional packaging fee. Pretty common to see a $2,500 fee for a SBA. I rarely charge it. The only time is when I get some pain-in-the-ass startup looking for a 7(a) - and that's usually to get them to go away.Last edited by WestCoastFunding; 12-01-2017 at 10:20 PM.
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12-02-2017, 07:41 AM #6
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
Depends on the size of the transaction (what to charge). If it is less than 100k we have charged as much as 5%- but typically 2-3 is the rule. As for your agreement: what we do is have them agree to an ACH pull immediately after they are funded- with a voided check. Your relationship with the banker will let you know when it funds.
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12-02-2017, 11:20 PM #7
- Join Date
- May 2017
- Posts
- 350
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