[NotALoan]

Risk is risk. My response was geared toward OP stating there is 0 risk for ISO other then clawback. There is risk for both sides, so fees (whether funder origination fees or PSF) compensate that risk.

But you are charging the PSF fee whether the deal performs or not. So if you got paid commission on the deal, and there was no clawback, what was the point of charging the PSF if not to line your pockets?

What is the risk for the broker that is not considered normal overhead? Keep in mind that funders also need to account for costs relating to verifying ISOs/brokers for risk. Do you spend money verifying funders for risk?