We are trying to find a business loan of 20 mio USD. One of the “finder” guys asked for 5% comission. I think this is insane. The loan details are below:
A Turkish company (a reputable car reseller which operates since 1973) is seeking a long term loan (10-12 years) for growth plans. (A land about 13mioUSD will be acquired -on a very precious disctrict of Istanbul- and then a building - plaza - will be constructed on it. The building will be used for sales, showroom, car repair service, some floors will be rented to corporate clients)
No that pricing is too high as the maximum finders fee that is offered is 2.2% i.e. 440K max.
Although if he is doing other tasks for you other than finding the investor that price may change.
Traditionally the commission is as stated 2.2%.
5% is on a higer side. Upto 3% is OK.