[SFC]

Has anyone else noticed funders starting to debit monthly "maintenance" fees from merchants. Usually a few pennies less than $50 a month? Is this a new industry practice? Is there any reason for it? Does the merchant receive any benefit from it?

I've noticed a few funders doing it.

[A+Paper]

On Deck has been doing it on their LOCs forever.

[mcaguru]

We dont. but if you ever want to see fees look at your monthly cell phone bill you will see fees going to so many agency's youll need to borrow someones hand to-keep count, gets worse hotels now have a resort fee LOL -- soon they will charge 25 bucks to allow suitcase into your room...its coming !

[SantiFunder]

One of my merchants told me their funder explained to them that it's a charge for them "servicing" their account. It was a 49 monthly fee. Seems unfair to the merchant as they are already being charged upfront fees most of the time. Ondeck charges I believe 20/month for LOCs.

[SFllc]

I've seen some funders charging $299 monthly...

[SFC]

I've seen some funders charging $299 monthly...

Jesus.


Is there anything to provide to merchants in exchange for these fees?

[DTFdowntofund]

Jesus.


Is there anything to provide to merchants in exchange for these fees?

Potentially withholding a UCC if they really wanted to (dick move I know) if it's actually noted somewhere in the verbiage of the contract should they put a stop payment on it. I doubt it would ever go that far, but they would be technically within their rights if that were the case. But it's most likely such a minimal amount, merch would never go that far.. it's like collecting a monthly set up fee or a marginal post PSF.