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small business loan
Who are you?? Go to Members page and share some info and then I will be happy to recommend and suggest
My first suggestion would be to avoid the broker all together - you can do everything this person does - and it won't cost you an extra fee.
Broker fees usually depend on the type of loan and amount being sought. I have seen fees as low as 1% and as high as 10% depending on the deal - the more risk of the deal the more time it will take on behalf of the broker and the larger the fee.
I still suggest you try to find a business loan on your own - thus no fees.
The clause is typical as the broker wants to control you as you move forward - again - I would suggest go it alone - there are many funding resources open to your business where you can deal directly with the lender!!
I do like the fact that your broker does not charge a fee until funding - that is a good sign on his/her reputation - you have contacted the BBB - have you also contacted the BBB where the broker lives? You can also check with his/her chamber of commerce. But, in th end - go with your gut feeling.
Business Money Today
Phanio.......you're correct to a degree. Sure an online stock trading source versus a full time stock broker.
You get what you pay for. If you have all the resources that a broker has than go for it. Should you pay
excessive upfront "dd" fees....of course not. Unfortunately the days of just going to the bank are over.
People need options and are not aware of all their options.
My thought is the same as wilfin. I work with a company named HomeCoast Capital and we have over 230 different sources, including our own capital. I think 360 months is excessive and would stay away from paying up front fees, unless you just want the broker to be a "stalking horse" for you. Then, he should be paid for his time.
Really, it is going to depend on how good the broker is, but he may save you a lot of time and money in the long run. You could search for a year in today's climate and keep getting turned down. It is better to have someone doing that work for you.
I agree wilfin - if you have the means to pay the broker's fees. If you don't - you have to roll up your sleves and do-it-yourself. There is a wealth of information on the web and other places regarding funding options for small businesses - in fact, that is the purpose of our website - to provide information and resources for small business owners seeking funding. But, there is a wealth of information besides our website. If you can't pay the fees or are like me and refuse to pay broker fees (especailly if I know that I can do it myself) - then you have to be willing to put in the time and effort to make it happen. If you truly believe in your business and yourself - this should be easy for you.
If you don't mind paying someone else to do it for you - then by all means - just make sure you will get results before you pay!
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What are typical loan broker fees or range of fees? I was quoted a fee (which I thought was rather high) that is due only upon closing of the loan (if the loan does not closed, there is no fee). He told me this fee is normal in the broker industry especially since he is not collecting commission from the lender. Also is it typical for the broker agreement to include a non circumvent clause for 36 months (i thought that is a long time as well). Lastly, how can I check the reputation or to see if there are any complaints for the broker? I checked bbb.org and it was not listed and could not find anything doing an online search. Any recommendations or suggestions what to ask or what to look for when seeking/ speaking to a loan broker.