Your Name and Your Adress

AGGREEMENT FOR FINANCIAL SERVICE

The undersigned, (Borrower's Name) , hereby appoints (Your Name) as his Agent, authorizes him to submit to lenders financial data and information supplied by the borrower for the purpose of the lender making a loan or investment direct to the undersigned. The undersigned agrees to pay to (Your Name) a fee of ______% of the amount of the loan or investment obtained. The undersigned hereby pays to (Your Name) $____________ as a non-returnable fee for time involved in apprasing feasibility of the loan requested.

This fee is separate from any other fees due if loanis obtained.

______________ ______________________

Date Borrower

Once you are organized and rolling, you'll find that most of your day-to day income will be derived from the packaging of loan applications. Once your client has signed the broker's agreement and given you his check for the retainer fee, you'll be helping him to get his loan or investment proposal together. This is the first thing to do, and you HAVE to do this regardless of any forms your client has already filled our, or anything he may have done relative to a loan proposal.

First give your client a detailed list of information he'll need to have within his loan or investment package. Because requirements do change from time to time, you will want to give your client the most up-to date requirements in this regard. Go to several of the banks in your area and ask their loan officers for a copy of their loan application forms. use these forms as your guide in making up the detailed list of requirements you will use in working with your client. If you need additional assistance, write one of the several organizations listed at the end of this report.

When you have the package put together and ready for presentation to a lender, take it back to your client and brief him on how to present it to the prospective lenders, and generally you would give him the names and addresses of the people you feel will be the most likely to listen to his presentation. He makes the presentation to the local prospects, and contacts your possible;le sources by mail. If he needs further help from you, you would charge him a per-hour counselling fee, plus consulting charge fro any special or extra time spent working for him.

Overall, you should position yourself and your service to the client in order to collect a "finder's fee" of 1/2% to 10% of the amount of money actually loaned to or invested in his business. A flat fee of $100 to $250 as a broker's retainer fee for helping him with his loan presentation when HE does most of the work__ and outright fee of 1% for total preparation for his presentation package---and a consultant's fee of $50 to $100 per hour for any additional time expended on the project. These are your "bread & butter" services that will establish you as a professional, and keep you in business until you score with a big commission from prehaps a million dollar loan. You have to involve yourself in

these services, because they'll make the difference between your going broke or really succeeding in the money brokering industry.

Indeed,, you'll become more efficient with each experience with a client. You'll soon recognize which proposals to concentrate your attention on, and of course, which ones to scan briefly and hand back to a loan seeker. the more you deal with money professionals, too, the sharper you'll become---and consequently, the more money you will make. Money professionals know what types of loans are possible or likely from each of their different funding sources; thus, they'll present only those having the best chances of success. You will quickly become well versed in the current lending and investment trends, and acquainted with the lending rates and requirements of your loan sources. As you review, assist and put together each of the request-for-money proposals, your knowledge will improve your ability to package specific requests, and to "sell" a loan proposal> Just keep in mind that every time a loan is approved, or when one of your sources decides to invest in a client's business, you'll be taking a financial cut right off the top.

Right here I'd like to assure that you don't have to be either a financial genius or a super sales person. All you really have to know is how to put together a proposal properly, and acquire a list of sources interested in lending money or investing in a venture to obtain a profit.

You'll find that most of the borrowers you sign to assist in finding money for are unaware that they will have very ,little if anything to say about the terms of the loan that may be finally granted. You'll find that most of them are already convinced that they have the ultimate idea that most for a business that will make everyone rich. Almost all of them are trying to get started with little or no money of their own, and they'll think that whatever the prevailing interest rate,it's too much.

Your first chore will be to screen these people. Explain the facts of life to them, and don't waste time with them if you have the feeling they'll reject or refuse to accept a loan you line up for them because of the interest rates, If they're been to most of the regular loan sources in your area, they'll know that when they want or need money, it's the lender who dictates the terms of the loan. A prospective borrower soon learns the prime rate that is published is almost never used. Actually, the prevailing prime rate plus two percent is generally a good rate of interest for small businesses. In moat cases, such loans have to be well secured with collateral not associated with the business.

Most of your would-be borrowers will not qualify for the prime plus two percent rate. Business experience, coupled with the type of business involved, will almost always put them in the "high risk" loan category. After you have your retainer fee, you have to educate your would-be borrowers in this regard. For those who cannot face the facts of life about interest rates, you have to just forget.

Something else you'll have to convince your clients of: If he says he'll give a share of his business in exchange for the use of your investor's money, he'll have to give up a very large share. Most small business investment corporations or private investors will want at least 25 percent, and more often than not, up to 49 percent. In some cases, where a half million dollars or more is provided by the investor, he may (reasonably) ask for as much as 70 to 80 percent. Thus, it's absolutely essential that you learn to qualify your would-be borrower before you get to deeply involved or waste too much of your life.

For those who can't or don't want to pay your retainer fee--I say skip them. And those who can't or don't want to pay the high risk interest rates when you let them in on the real facts of life--forget them too. And those that have been turned down by practically every lending institution in the country, I would

advise you---let some beginner gain practice on them. And these are the ones you need to learn to spot wile YOU are a beginner.

You should determine exactly how much cash and other assets your client can or is willing to put into his proposed business. You'll have to be satisfied with the character of your client as a borrower; his record of paying his bills, how he gets along with people, and his overall chances of success. You'll have to do the checking of his references and credit record. You'll have to judge how he'll make good on the loan if the business goes sour. When these questions are answered to your satisfaction, you can go with helping him put together a proper loan proposal and work toward getting him the money he wants.

Most successful money brokers charge according to the size and type of loan being requested. This is based on the amount of work they have to put in to place the loan. If it looks like a pretty solid business with a good record on the part of the borrower, and good collateral, the fees are usually lower. On the other hand, if it's a high risk proposal or if the borrower has a very little business experience and you're going to end up doing a lot of selling to get the loan approved, your fee should be accordingly higher.

Remember that not all loans are approved, even though they might have looked good to you in the beginning. With this in mind, you have to charge for your services and makeup for the time you spend with those proposals that don't get approved by charging and collecting on those that do get approved. An example of the typical commission charges is shown below.