Upfront Fees for Financing?

I recommend challenging anyone who asks for upfront fees to supply references (always check references indirectly [rather than call the party directly, try calling their VP of Finance for example to see if the deal was done as claimed]); and if they refuse, then offer to have your attorney hold the money in a performance bond escrow for them; and if they refuse that, to give them a time-limited (30-45 days) exclusivity where you sign a legal document prepared by your attorney that obligates you to take their money if they offer in within the time frame and with the same terms and conditions as specified in the agreement (this protects them against your walking away when they have done a great deal of work).

John Fenner

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