Fees for Agent Referrals: Examples
Those who successfully refer clients to the LeverageLine program deserve earnings compensation when the client has received funding to their satisfaction and as promised. This latter is important to us and we always strive to ensure that every client receives the very best in professional lending services, no matter how large or small. We share the fee with the referring agent if they were responsible for introducing the client to us.
Please note that our agents do not broker or sell the LeverageLine program. Our agents are individuals already working in finance-related industries where they may run upon clients who own eligible securities and might be interested in a credit line of this type. They then refer them to us, where we qualify them and move them quickly into the licensed lending institution to commence their funding. Our agents refer, but do not broker.
Learn more about our stock loan fees.
At A. B. Nicholas, we compensate our referral agents immediately upon receipt, with 1/3 of total points on every transaction the agent as referred. Here is an example of such fees on a $1 million portfolio at 75%, 80%, and 85% loan-to-value (all figures assume 2% in origination fees):
- Portfolio size: $1 million Credit Line; LTV: 75%; Total line offered: $750,000; total fees @ 2%: $15,000; Agent Fee @33%: $5K
- Portfolio size: $1 million Credit Line; LTV: 80%; Total line offered: $800,000; total fees @ 2%: $16,000; Agent Fee @33%: $5.2K
- Mixed Bonds, Equities, Mutual Funds Portfolio size: $1 million Credit Line; LTV: 85%; Total line offered: $850,000; total fees @ 2%: $17,000; Agent Fee @33%: $5.6K
Total: (Three Transactions): $15,890
These figures could be lower or higher depending upon the collateral value. All fees are treated for tax purposes as 1099 Consultant income and reported to the IRS as required.
(The above earnings figures are for illustration only; actual payouts may be higher or lower depending on a variety of factors related to the size and quality of the collateral assets. Please note that Agents always have input in determining origination fees. Please read our disclaimer prior to engaging clients).
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