Monday Question – Finders Fee Payments
04-05-10
Question:
Q: What should I pay to someone who locates funds for my project?
A: I haven’t checked within the last couple of years so first I recommend you check with the Securities Exchange Commission in your jurisdiction and the government on their requirements. There are also conditions on how you can present your investment opportunity and if you require a prospectus or not.
The Finders Fee parameters were as follows the last time I was raising money: a) a maximum of 10 % on the first $300,000; b) a maximum of 7.5% on amounts between $300,000 to $1,000,000; and a maximum of 5% on amounts above one million dollars.
Please check with your financial advisers and legal counsel to ensure that the compensation amounts and rules haven’t changed and always have professionals review and edit any business plans or potential investment packages you are thinking about using to raise money for your projects or investing in.
Sandford
