[Incbiz440]

Why would you mention an PSF if you don't have an offer with specific commission? I'd only bring it up if the loan product doesn't pay me other than a small referral fee and I tell that to the client....I then tell them I'm sending a fee agreement and to send it back signed with a voided check along with a signed approval offer.

This was my question - so your approach is get an approval, then circle back if you feel its needed (funder doesn't pay, or pays a minimal amount). Thanks for sharing that. Do you give them a heads up that they may be on the hook for a PSF, or present that with the approval and say either you pay me or I don't share the approval? Seems like there would be potential to spend time getting to an approval, and then have a client decline to sign. OK, they don't get the loan, but you also wasted your time.

No judgement on your approach, just curious how others are approaching it.

[Olderguy]

This was my question - so your approach is get an approval, then circle back if you feel its needed (funder doesn't pay, or pays a minimal amount). Thanks for sharing that. Do you give them a heads up that they may be on the hook for a PSF, or present that with the approval and say either you pay me or I don't share the approval? Seems like there would be potential to spend time getting to an approval, and then have a client decline to sign. OK, they don't get the loan, but you also wasted your time.

No judgement on your approach, just curious how others are approaching it.

I don't mention it unless a loan approval comes back with only a referral fee. Then I tell them "To get you the best loan for this type of scenario, the lender's program won't pay me a broker's fees of the usual 2%. Thus I am required to charge a separate PSF when the loan is funded".

I'll send you a separate fee agreement with the approval. Please sign both and return with a voided check and we'll get your file in processing.

I just funded a SBA loan for inventory and there was no broker fee allowed....had to do this.

Sample fee agreement:

https://drive.google.com/file/d/1Rr2...ew?usp=sharing

[Incbiz440]

I don't mention it unless a loan approval comes back with only a referral fee. Then I tell them "To get you the best loan for this type of scenario, the lender's program won't pay me a broker's fees of the usual 2%. Thus I am required to charge a separate PSF when the loan is funded".

I'll send you a separate fee agreement with the approval. Please sign both and return with a voided check and we'll get your file in processing.

I just funded a SBA loan for inventory and there was no broker fee allowed....had to do this.

Sample fee agreement:

https://drive.google.com/file/d/1Rr2...ew?usp=sharing

That's a good way to position it. Thanks for the insight.