[Dcohen]

I started using a new funding company to fund my deals.
I sent them a deal they approved for X amount, i got signed contracts and everything. When they did the funding call they asked my merchant if my company was putting a fee and she said yes!
He emailed me saying dead deal because i was putting a PSF which was only 5%.
The lender emailed me saying your trying to F..k me on my money and putting the merchant and myself (the lender) on risk because i added my PSF.
I told him are you new to this game EVERY COMPANY OUT THERE PUTS A PSF. I told him the merchant is well aware of our fees as well.

I just wanna know if i'm wrong here or the lender is?

[Anthony@torro]

As long as you Pre sold all fees and the merchant signed your authorization form your new funder is 100% wrong. If you aren't signed up over here, feel free to reach out to me.

[DannyFoxCap]

5% is reasonable, drop that funder

[Dcohen]

YES! I pre sold all the fees and the merchant agreed and was fine with it.
I was literally going back and forth with the funder. i even told him drop your fees or do a no claw back policy and i wont charge fees.
He felt stupid after and funded the deal.

[abfunders]

Does the ISO agreement state clearly no PSFs?
And no, not "EVERYONE" charges PSFs.

[pcfunder]

How much commission was the funder paying?

[J.Celifarco]

Depends on the funder. A lot of funders have it in their iso agreement that you can't put a psf on the deal. If its in the ISO agreement and you do it anyway, then they have every right to kill the deal. You just need to know your funders and what is allowed where.

[Michael I]

read your iso agreemnet carefully. One iso agreemnt i saw had, that if you charge a fee and the loan defaults you will be responsible for the whole payback . so if it is a 100k deal paying back 130k and you charge the guy only $500 and he goes bad , you will owe 130k . crazy

[NoBigDeal]

YES! I pre sold all the fees and the merchant agreed and was fine with it.
I was literally going back and forth with the funder. i even told him drop your fees or do a no claw back policy and i wont charge fees.
He felt stupid after and funded the deal.

How much was the funder's fees?

[brokerCompany]

yeah PFS is in your ISO agreement. Some funders dont like most dont care

[Dcohen]

Does the ISO agreement state clearly no PSFs?
And no, not "EVERYONE" charges PSFs.

No i even went back on the iso agreement does not say anywhere that we cant charge a psf

[Dcohen]

How much was the funder's fees?

10% and i only only charged 5%
i even told the funder do a no claw back or split the fees. Its not like im bucking the merchant, i told the merchant flat out and they were fine with it.

[Michael I]

10% and i only only charged 5%
i even told the funder do a no claw back or split the fees. Its not like im bucking the merchant, i told the merchant flat out and they were fine with it.

time to move a new funder than.

[SantiFunder]

Most don't really care as long as it's presold and it doesn't put the deal at risk once it hits final. If it's not in your ISO agreement then yup you're right.

[J.Celifarco]

10% and i only only charged 5%
i even told the funder do a no claw back or split the fees. Its not like im bucking the merchant, i told the merchant flat out and they were fine with it.

thats 15% total fees taking what was probably a 1.49 to a 1.75. The bank charging 10 is crazy and you putting another 5 on top of that is total insanity.

[Dcohen]

thats 15% total fees taking what was probably a 1.49 to a 1.75. The bank charging 10 is crazy and you putting another 5 on top of that is total insanity.

how else you want us to make our money?

[J.Celifarco]

how else you want us to make our money?

do more deals, treat the customers good so they come back and use you again instead of running to work with another broker who isnt going to bang them over the head.

Build a refi book from treating customers good and you will end up making more money in the long run then banging people over the head to make a couple extra bucks on every deal

[Kevin Henry-Seacoast]

do more deals, treat the customers good so they come back and use you again instead of running to work with another broker who isnt going to bang them over the head.

Build a refi book from treating customers good and you will end up making more money in the long run then banging people over the head to make a couple extra bucks on every deal

What he said.....

The second mouse always get the cheese.....

[abfunders]

how else you want us to make our money?

How else? 10 points isn't enough for you?
If you want more money, instead of putting business OUT of business, you could get a real job instead of us losers who broker ;-)

[WestCoastFunding]

Some like ECG will want to know the PSF amount so they can work it into the Debt service coverage model.

[WestCoastFunding]

I love brokers using PSFs because it’s just so easy to beat them when you compete. I’ll cut my commission to 0 to win a deal (because I know it will be eligible for a bonus for hitting funding amounts). But when I’m going up against a broker charging a PSF I don’t even have to downsell — my max commission will win the deal.

[Kevin Henry-Seacoast]

I love brokers using PSFs because it’s just so easy to beat them when you compete. I’ll cut my commission to 0 to win a deal (because I know it will be eligible for a bonus for hitting funding amounts). But when I’m going up against a broker charging a PSF I don’t even have to downsell — my max commission will win the deal.

I bet you clients love that as well. A sticky client is one that knows you fought for his deal.

[jfeinberg]

You are 100% wrong in this situation. Not saying that putting in a PSF is wrong, or its not a good way to make money.

But you need to be on the same page as the lender. At the end of the day the worst thing you can do is lose lenders that are actually putting real money out not just saying they are lenders. I know from experience, that I have seen a lot of brokers ruin relationships because of fee's. If you are upfront with the lenders, a lot of them will allow you to add fees onto the contracts and they will pay you directly.

If, better yet, when the bubble bursts and regulation hits, its brokers like you that will be pushed out. Unless you start to be on the same page with all of your lenders.

[pcfunder]

You are 100% wrong in this situation. Not saying that putting in a PSF is wrong, or its not a good way to make money.

But you need to be on the same page as the lender. At the end of the day the worst thing you can do is lose lenders that are actually putting real money out not just saying they are lenders. I know from experience, that I have seen a lot of brokers ruin relationships because of fee's. If you are upfront with the lenders, a lot of them will allow you to add fees onto the contracts and they will pay you directly.

If, better yet, when the bubble bursts and regulation hits, its brokers like you that will be pushed out. Unless you start to be on the same page with all of your lenders.

Yeah I agree with this. It seems kind of weird to me to make 15%-20% on every deal. I don't think I've ever made that much on one single deal I usually make more money with volume/renewals/bonuses/etc...

[Fund_It]

who the hell is charging a 10% fee. Yellowstone doesn't even charge that much