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    3 Replies Latest reply on Jun 2, 2009 5:47 AM by phanio

    Due dillagence money

    placeintime Wayfarer
      Quick question: What is Due Dillegence money and how much is it usually?

      Thanks
      Jim
        • Re: Due dillagence money
          LUCKIEST Guide
          Due diligence money

          Know your customer (*KYC*) is the due diligence and bank regulation that financial institutions and other regulated companies
          must perform to identify their clients and ascertain relevant
          information pertinent to doing financial business with them. In the
          USA, KYC is typically a policy implemented to conform to a customer identification program mandated under the Bank Secrecy Act and USA PATRIOT Act. Know your customer policies have becoming increasingly important globally to prevent identity theft fraud, money laundering and terrorist financing.
          In a simple form these rules may equate to answering twelve questions,
          but this is the tip of the iceberg and regulators now expect much more.
          • Re: Due dillagence money
            Lighthouse24 Ranger

            In general, due diligence is an independent confirmation of that all the key elements in a transaction are exactly what the other party is saying they are. So if you're buying a used car, your due diligence might be to have an independent mechanic (one who is not involved in the deal in any way) inspect the car to verify its condition -- so the money you'd pay him for that might be considered due diligence money in that case. The seller's due diligence might be to check your credit (and there might be a fee associated with that credit check, and that fee would be another type of due diligence money). So how much it is varies depending on the size, nature, and risk of the transaction -- for example, due diligence on the simple purchase of a small piece of business property might cost a few hundred dollars, but due diligence on a venture capital deal can cost tens of thousands.
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            • Re: Due dillagence money
              phanio Pioneer
              I would caution you on paying a dilligence fee up front without fully understand what your lender is using those funds for or having some guarantee of the return of your money should they not fund you. There are companies that will charge you those fees - then you will never hear from them again.

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