Loan amount is about $85K, and 2~3 day turn around. I have worked with the borrower for a while on longer term deals. I'm thinking higher points should be fair in this situation. What are your thoughts?
@Shu Zhu I think it would depend greatly on risk. Why do you only need 3 days? Do you already have a cash buyer set up? If the contract is solid and already executed, I would say that 2 - 4 points ($1.6k - $3.2k) would be fair. Who cares about interest because it will be small with just a few days on it. Interested to know the details on this deal if you don't mind sharing.
@Shu Zhu if you are comfortable lending the funds to your customer then go for it. Higher points might be ok but we don't want to drive a good customer away. Just be fair about it and if you do need to charge a little higher to make up for the work be up front with the customer about it and reinforce that you value their business. If it's a good deal for your customer they should be understandable. Good luck!
Thanks to both of you.