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  • I Advice - Should You Pay Upfront Costs For A Small Business Loan?

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    a common industry practice. The key is to know what the upfront costs will cover.

    Here are a few questions that you should ask before pa

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    Many time entrepreneurs turn to angel investors, private equity lenders and what is commonly known as "hard money lenders" to fund new ventures. Unlike traditional lenders or banks, many of these lenders ask for a deposit or upfront cost that can range from $2,000 on up. This has become the cause of much controversy and debate in the small business community. The questions looms. Is this an ethical practice?

    Unfortunately, there are lenders that are unethical and dishonest. However, in all fairness, you have to separate what is unethical from what is a common industry practice. The key is to know what the upfront costs will cover.

    Here are a few questions that you should ask before pay

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    s. Unlike traditional lenders or banks, many of these lenders ask for a deposit or upfront cost that can range from $2,000 on up. This has become the cause of much controversy and debate in the small business community. The questions looms. Is this an ethical practice?

    Unfortunately, there are lenders that are unethical and dishonest. However, in all fairness, you have to separate what is unethical from what is a common industry practice. The key is to know what the upfront costs will cover.

    Here are a few questions that you should ask before pa

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    become the cause of much controversy and debate in the small business community. The questions looms. Is this an ethical practice?

    Unfortunately, there are lenders that are unethical and dishonest. However, in all fairness, you have to separate what is unethical from what is a common industry practice. The key is to know what the upfront costs will cover.

    Here are a few questions that you should ask before pa

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    ortunately, there are lenders that are unethical and dishonest. However, in all fairness, you have to separate what is unethical from what is a common industry practice. The key is to know what the upfront costs will cover.

    Here are a few questions that you should ask before pa

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    a common industry practice. The key is to know what the upfront costs will cover.

    Here are a few questions that you should ask before paying upfront fees.

    1) Are the fees for additional services that must be rendered before the application can be processes.

    EXAMPLES -

    • If the loan will be secured by real estate, a commercial appraisal wil be required. The fees start at $2,500 and up.
    • Does the lender require a business plan? The cost to have a professional (not template based shabby work that is available anywhere on the internet) plan prepared will range between $3,000 - $10,000.
    • For a new business, do you have to provide proof of licens

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