Post a new topic
    5 Replies Latest reply on Apr 28, 2009 10:33 AM by money4u

    Misconceptions

    wilfin Adventurer
      Our company, Wilmington Financial Group (www.wfginc.net) arranges financing and funding for
      commercial finance: real estate,developers, construction loans, refi,A&D, mezzanine.
      Business finance: business acquisition, business loans,etc.
      Equipment leasing financing
      Factoring

      We do charge an up front fee. Commercial Real estate fee:$379.00
      Business Capital :$249.00
      Leasing and factoring:$179.00

      These are application fees. So why do we charge an up front fee? Simply because, as I mentioned, these are application fees.
      Do we charge anything else? Nope, not unless we can fund a loan. We get our compensation on the back end.But why an
      upfront application fee? Well we, like many other reputable firms, upon receipt of the clients pertinent documents,etc. we
      compile the package for submission to our funding sources.If we are in need of further info from the client before submission
      we are on the phone with the client explaining everything we need so it's done right. Does this take time, of course. So it's a
      ONE TIME fee, not a ongoing "monthly" fee. Reputable companies will charge a small nominal one time up front fee for
      the clerical work, and work dilligently to fund the deal so they can be compensated on the back end and look for referral
      business. Unfortunately there are many unscrupulous and not reputable companies that are taking advantage of the business
      owners looking for funding. They make false claims and false promises, and charge exorbitant up front fees, and then in some
      cases monthly fees while they build your business credit or claim to act on your behalf shopping your loan around.

      We encourage every client to first check with their local banks. If they cannot procure financing through those means
      then working with a broker is a good recourse. Not that we are a "last resort", but have many sources that we can work
      with, but only if we feel your file has "legs" and there is a possibility. To companies that work on their compensation on
      the back end they will only take on opportunities that have a good possibility as the nominal "upfront" fee charged is taken
      up on the clerical work and hours put into packaging the loan. If the loan gets funded, the client is happy and satisfied and the
      broker is also rewarded with compensation.

      Point is there are companies that will a charge a reasonable up front fee.Explain what they are for. Make absolutely no
      guarantees or false promises. Don't charge you a fee every month while they are "working for you".

      In this day and age you need "skin in the game", collateral, etc. You need to show longevity, a resume showing your
      experience,etc. Please don't get fooled by all these companies claiming they can do so much for you....just pay their
      price! If you receive paperwork,engagement forms,etc. from a company have them checked by an attorney.

      Hope this helps and clears up any misconceptions. If we can help you we will certainly let you know, if we can't we'll
      be honest and let you know so we all save time and money.

      Thanks for reading.