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04-03-2019, 07:34 PM #1
- Join Date
- Feb 2019
- Location
- New York
- Posts
- 7
We want our commission back!!!
Hi
I joined the forum a little over a month ago, I’m new to the alternative lending industry. I've been reading the threads and learning.
I would like to ask your opinion on a referral agreement. Within the agreement it states
“If a funding (excluding a lease funding) defaults within 45 calendar days, then the commission paid to Agent must be returned upon notice of default. If a lease funding defaults within 4 months of funding, then the commission paid to Agent must be returned upon notice of default. The time frames that trigger a commission being returned due to client default are determined by funding sources and may change from time to time. We reserve the right to debit (via ACH) Agent’s checking account if any commissions are not promptly returned notice of a default.”
Is this standard practice with some lenders? I don't agree with it. I work hard to find businesses that are in need of funding. I feel that the underwriting department should be diligent enough to minimize accepting businesses that default. And, if they are willing to fund a high-risk business the funding company who accepted the risk should not punish the agent, who is working hard to bring business to them, by taking back the commission.
Would you sign a contract with that stipulation in it? I'd appreciate your opinion on this matter.
Thank you
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