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  1. #1

    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!

  2. #2
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    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.

  3. #3
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    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.

  4. #4
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    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?

  5. #5
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    Quote Originally Posted by johndough17 View Post
    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?
    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.

  6. #6
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    Quote Originally Posted by johndough17 View Post
    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?

    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.

  7. #7
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    Quote Originally Posted by RichardGerard View Post
    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.
    What happens when they block your fee?

    Does the agreement have any guarantee of you getting paid?

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