Whenever you are preparing a Regulation D Offering through Commercial Lending Corporation, you need to be aware of additional fees and commissions which you could experience. First, if you use brokers or dealers to help solicit funds from private lenders, each one of these often charges a commission. The average commission runs around 10 percent of the amount the broker or dealer is able to secure from their private sources. For example, they raised $50,000, so their commission would be $5,000. Make sure to be aware that the actual commission rate can vary, so some brokers might charge less, while others may charge more. Commissions are commonly added to the total offering amount you need to raise, rather than deducted from the actual proceeds.
However, you are not required to use brokers or dealers to sell your Regulation D Offering. You are free to sell your securities directly to investors and private lenders. Just remember, some states do have a filing fee, in order to sell securities to lenders or investors residing in the same state as your company. The amount of the fees varies, from state to state, and normally ranges from $50 to $250. The state fees are paid only if you decide to seek out private lenders or investors within your state. Soliciting capital from outside your state does not require paying any state fees. It is always a good idea to check with your state’s regulatory agencies, to verify whether there is a fee, and to determine the actual amount prior to soliciting investors. Additionally, there are no federal filing fees to use a private placement program through Commercial Lending Corporation.
Tagged: Commercial Lending Corporation