Results 1 to 25 of 232
Hybrid View
-
04-09-2020, 08:24 PM #1
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,950
Regarding PPP - a business owner more than likely go their CPA/Accountant/Bookkeeper to provide the SBA Bank with payroll documents etc.
But if you think you want to play the game of "Document Preparation/Broker download, read & understand
SBA Form 159D - FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT
For Agent Services In Connection With an SBA Disaster Assistance LoanDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
-
04-10-2020, 09:44 AM #2
- Join Date
- Jul 2016
- Posts
- 8
-
04-10-2020, 11:43 AM #3
- Join Date
- Jun 2017
- Posts
- 2,049
Technically your not Charging a Fee on the LOAN
Your Charging a Service Fee to FILE the PAPERWORK in ORDER TO APPLY for the LOAN....
Im not a Lawyer.... But I could make a case.....
-
04-10-2020, 11:50 AM #4
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,950
Fees
Murky Waters - Keep in mind the merchant is applying for a "Loan" - Let's assume for a moment you are correct,
and you change the maximum $2500.00 fee that is allegedly allowed on the SBA Form 159D - Merchant is declined - then what?
Also IMO - there are a few land mines in the agreement.
https://disasterloan.sba.gov/ela/Documents/Fee_Disclosure_Form_and_Compensation_Agreement_(15 9D).aspxDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
-
04-10-2020, 11:58 AM #5
- Join Date
- Jun 2017
- Posts
- 2,049
Whose to say the Fee I am charging is limited just to that specific program??????
I've had "Brokers" Charge massive upfront Fee's then shop the merchants file to me, and i get them an MCA (this happens alot in the asian community for some reason)
If Im charging an Upfront Service Fee - Whatever you want to call it, to Capture that Customer, then shopping their file SBA, LOC, MCA Whatever...... all I'm saying is.....IT HAS BEEN DONE.
-
04-10-2020, 12:59 PM #6
- Join Date
- Oct 2016
- Posts
- 4,318
-
04-10-2020, 12:02 PM #7
- Join Date
- Jun 2017
- Posts
- 2,049
Also If your Agreement makes it clear your Fee is for Document Preparation and Filing and ETC ETC and is Paid upfront and has nothing to do with them being Approved or not. Its just like the example I used above with the Student Loan Deferment - Yea you can Apply yourself, and hopefully it works out, or you can pay our fee and let us handle it for you.
And if your charging more than $2,500 thats ridiculous anywayLast edited by ryan $; 04-10-2020 at 12:08 PM.
-
04-10-2020, 12:17 PM #8
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,484
Ryan,
Investment Bankers use a similar model. There were time when I would charge a client an advisory fee for seeking alternative options for a business. There would be an upfront retainer charged and an hourly rate. For capital raises: Always an exclusive agreement, retainer, and success fees. Size of transaction and scope of work usually dictates fees.
My last engagement as an investment banker was for an advisory role that ultimately turned into a capital raise.
Advisory was $25K upfront and $300 an hour plus expenses. The capital raise was $75Mil .....combination of equity and debt. I lowered the retainer on that portion to $15K . Success fee was 2% on any debtor....senior or mezz. Equity was 2% plus equity/warrants on the back end. I still have the warrants.... Equity closed was $40Mil with a Family Office I know well. Senior and mezz was $35Mil ....bank and mezz fund. I deducted the retainers from fees at closing.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
Similar Threads
-
SBA Paycheck Protect Program
By Yankeeman07 in forum PromotionsReplies: 0Last Post: 03-31-2020, 07:30 PM -
Personal Injury Protection (PIP) Factor
By socalgav in forum Deal BinReplies: 2Last Post: 02-18-2020, 07:26 PM -
The Pleasure of Protection
By blindbid in forum PromotionsReplies: 6Last Post: 10-19-2018, 06:22 PM -
Overdraft Protection? NSFs
By omegafund in forum Deal BinReplies: 2Last Post: 01-16-2018, 12:27 PM -
Benchmark Releases Newly Developed Go ACH Platform for the MCA Industry
By Benchmark in forum Merchant Cash AdvanceReplies: 0Last Post: 03-10-2016, 12:36 PM