[zalman]

As a funder what are your feelings about PSF's?

If you're against them, do you think that there is a time and place that they're ok?

Disclaimer:

Being that I run GoACH.com I can say that industry wide there has been a massive uptick in ACH accounts for brokers, while we will continue to board them I wanted to hear your insight into the practice.

[RocketCapital]

I'm all for PSF's as long as they are sold properly and disclosed to the funder prior to funding.
Broker's work hard to retain their clients and sometimes adding a PSF makes sense.
We also offer our ISO's the option of adding a PSF into the contract - we find it causes less friction with merchants than a separate fee being pulled post funding.

Steve Rose
Office: 786-475-7824
Cell: 954-305-7737
Steve@rocketcapllc.com

[HighRisk Funder]

PSFs are cool, but anything over 10% is just too much

[TheProphecyofMCA]

Looking for a PSF software.

[Olderguy]

By their definition, they inflict more cost to the merchant who is paying high fees to begin with on MCA loans. They are illegal for SBA loans as for most real estate loans.

[brokerCompany]

we charge them on LOC. Since if we arrange a 100k LOC and merchant only takes 10k! We still make some funds

[abfunders]

I personally never use "PSFs" like some ISOs constantly claim that they need to do. "Oh, just PSF him." I have fee agreements prior to contracts so the merchant knows what I'm charging them from the beginning.

[MCABRuno]

Also looking for PSF software.. Please reach out

[goldenhippo80]

Also looking for PSF software.. Please reach out

Actum is probably the best

[Steven_O]

PSF's should be OK only if the broker sells the deal at the buy rate. This way they get paid without the claw back risk AND the merchant gets a reduced rate that doesn't include commissions (which also has a factor ON TOP of it)! Sounds like a win win to me.

[benkhay]

Hate it when brokers already get 13 pts and try to slap a 10-15 pt psf on top.... greedy is the word

[American Choice Cap]

I'd be fine with PSFs provided they were disclosed properly. I know some brokers who will stack a deal 3 or 4 positions and then take a 20% PSF. That practice does not sit right with me. Therefore, I don't condone PSFs as it may ruin our relationship with the merchant as well as the brokers relationship with the merchant. Overall a bad time for an extra cent.