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  1. #26
    Senior Member Reputation points: 8536
    Join Date
    Dec 2015
    Location
    Los Angeles, CA
    Posts
    121

    PSF in MCA? Nope.

    If you're a broker, you work with many lenders and with deal experience you'll know which lenders will give the best offers depending on the file. As a broker, the value you offer is your knowledge of the industry, lending sources, and ability to use multiple lending platforms to get the best offer for the client. Probably one of the silliest things you can do on MCA deals is a PSF, you're already averaging 6% - 9% on the deal.

    Now, merchants receive many calls about funding. There are tons of lenders and brokers out there, all telling them the same thing. Look at it from their point of view... who should they believe? Where do they start? How can they find the best deal without spending their whole day shopping lenders and taking time away from their business?

    Brokers.

    If a merchant is in this place, trusts you, and gives you the opportunity to work with their business then make sure you actually deliver the best value.
    Eventually, someone else will call the merchant about funding and if you penny pinched them with silly fee's and max PTS, they'll know. Your value will be diminished and you will lose the clients trust and business.

    I feel a PSF is only justified on equity financing deals for development projects, or consultation services for client's that require extensive account management (and no, not MCA account management).

  2. #27
    Senior Member Reputation points: 107104
    Join Date
    Aug 2016
    Posts
    834

    So sad that so many of you do not help merchants with products that pay no commission and you have to charge a psf fee. There is a time and place for everything. Every merchant that i ever charged a psf fee to is mine for life because it was a better product that they were never offered.
    For mca deals I only charge the default files because chances are they will be commission recalled

  3. #28
    Senior Member Reputation points: 64261
    Join Date
    Oct 2020
    Posts
    127

    Quote Originally Posted by Iscibibi153 View Post
    People have different opinions, what is yours?
    Be upfront with the merchant. Let them know that's part of how you make your money. And collect at closing just like the funder does with their fees.

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