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05-27-2020, 03:54 AM #1
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- May 2020
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- 105
Psf fee
Do any shops have a policy of absolutely no psf fees?
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05-27-2020, 08:22 AM #2
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,484
What is a PSF fee?
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
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05-27-2020, 08:25 AM #3
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- Apr 2019
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- 318
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05-27-2020, 08:29 AM #4
- Join Date
- Mar 2015
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- Boynton Beach
- Posts
- 3,484
Oh-We don't use them as we are a factor and asset based lender. We typically have referral agreements where we pay our referral partners commissions on deals closed. It is pretty lucrative so we rarely have brokers/referral partners asking for additional fees.
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
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05-27-2020, 09:19 AM #5
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- Jan 2018
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- 353
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05-27-2020, 09:22 AM #6
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- Jan 2020
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- 88
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05-27-2020, 11:08 AM #7
- Join Date
- Apr 2016
- Location
- Ft Lauderdale
- Posts
- 57
No funder should have a say in what you charge. Funders charge origination so sometimes it's best to add your fees to the origination fee and collect it that way .
Jstrelzik@flashadvance.com 305-785-2548
Direct Funder
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05-27-2020, 11:18 AM #8
- Join Date
- Feb 2017
- Posts
- 3,426
If you add fees onto a lender or funder, especially high ones, that can totally change their underwriting on the feasibility of payback.
The MCA is a 90 day deal, If some broker goes and adds on 5-10% fees, and the client doesn't net as much, that can really change the affordability.
I agree, the funder should be "in" on it, and put everything on the closing docs / contracts if the broker wants to add extra fees.
However, I know that most lenders/funders do it like Kevin (i.e. assume that there's enough money for the broker in their payoffs), and other funders/lenders just assume PSFs are going to be charged and don't care.
However, a funder can do whatever they want.... they can even sue you for violation of their ISO agreement if it says "no additional fees."
I personally do fee agreements on a case-by-case basis. Almost all residential mortgage brokers do that, and they even charge for approval, not just funding, since they aren't paid by the lender at all. In such a case, they're actually working for the client and not "double dipping."
For me, it depends on the client, and never on an MCA, but I very often try to set up a success / fee agreement with my clients, but they know that from the beginning, not sprung on them in the end last minute, and always with the lender's agreement.Last edited by abfunders; 05-27-2020 at 11:21 AM.
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05-27-2020, 11:24 AM #9
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- Jun 2015
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05-27-2020, 12:14 PM #10
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- Jan 2018
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- 353
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05-27-2020, 03:42 PM #11
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,948
Putting aside the discussion of PSF good or bad, anyone that want to collect PSF within minutes may utilize our E-Check 21 Gateway:
https://check21gateway.com/?reference_no=2138250179Dave 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
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05-27-2020, 08:43 PM #12
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05-28-2020, 10:36 AM #13
- Join Date
- Oct 2017
- Location
- NY, NY
- Posts
- 36
I ask my ISOs to keep it under 5% and to never PSF a reverse