[mistamca]

If you need third party fees maybe you should re evaluate your business model. Last time I checked SBA doesn't allow third party fee agreement. But all fees can be documented....just not third party outside of the funding. Their fees are spelled out in their contract and paid at closing. Neither do real estate transactions. Fees paid in Escrow but now outside. Brokers call me every day who charge people up front without any guarantee of performance and separate from fees they get from the lender. All I hear from brokers is how many points and can I charge extra fees. Personally I think it's just stiffing the client for more money and if you have the right programs and business operations you shouldn't need to do it.

You can 100% take fees prior to funding on a SBA 7(a) AND 504. You better be doing work in relation to those fees but if you are doing work, then you are allowed to be compensated.

It seems like you are used to hearing requests about junk fees but I can tell you that PSFs are a bit of a necessity when scaling out an MCA shop. There is a right way and wrong way to do it.

As a one-man band, I can imagine that additional fees don't make sense but when you have overhead & the market turns away from your projections, you need to make up the income somehow.

Also as Oxforddan pointed out, this is a pretty common & smart strategy in the B space. There is nothing wrong with it. Its a free market. If you point out the fee & they go with someone else, then fine. If nothing else, it is just a negotiation tactic to make a merchant feel like they are winning even more. (I'm guilty of this. I need to see a discount. Even if it is a BS discount, I need one to buy something)