Over the years (and again just yesterday) I’ve regularly heard of vendor financiers getting into ‘situations’ regarding the Document Preparation Fee. Depending where you got your vendor finance education, it might have another name but it’s the fee your buyers pay you to get your solicitor to draw up the legal paperwork for the transaction.
How do these ‘Situations’ come about?
Inevitably these ‘situations’ revolve around whether or not the Fee is refundable and whether it should be a full or partial refund. We’ve found it’s best to get the rules around the Document Preparation Fee out in the open right from the beginning.
When we receive the Fee, apart from giving the Applicant(s) a receipt, we get them to authorise our Document Preparation Fee form.
Our form may not fit your processes exactly, so that’s why it’s in MS Word format, i.e. it’s easy for you to make the changes you need to fit your business model.
It saves you wasting a lot of time on, stress building, misunderstandings 😉