Hey folks - is it common to sign an exclusive retention agreement with a commercial financing company? I'm reviewing a document that requires me to be exclusive to my commercial financing company for up to 5 years (based on the lenders they introduce me to)... seems a bit extreme and also carries a $10K termination clause.
Net-net: I would owe them an origination fee of 1% irrespective of which lender I use. Is it foolish to sign this thing?
Hi David, I've never heard that before. Roughly how much debt are you looking for?
That is a broker ensuring that if you continue to use the same lender after you close they still get paid. It is something most brokers will make you sign however the terms can differ. 5 years seems a bit long but not totally abnormal