What is a psf it stands
for professional service fee? It is
in essing in essence. It is in
essence a closing cost charged by the broker to
a merchant in a business financing and
transaction.
Now normally in this particular world
the broker is already getting paid a
commission by the funding source.
Typically, so that would mean that this other
fee of this psf is another via separate
fee being charged by the broker to
the merchant which means the broker is getting paid.
twice
two fees two fees
So not every broker will charge a psf
because technically they're already being paid. The
question is are they being paid enough for
the service at the rendering?
Because we don't know what their commission is right out the top of her head
and this hypothetical scenario.
Some states are now requiring disclosure a
broker fees whether it be the commission. They're
getting
And or the psf that they're charging
so this information will become more available
to merchants in terms of how much is my
broker. How much is my salesperson getting paid on
the deal?
Before they may not have known that a
commission with being paid to the broker. And so the psf kind of
made sense, right? But all
it is at the end of the day. It's just a fee a professional service
fee the Brokers charging independent of
the funding company paying out of commission so that
the broker can get paid for
its work