How should fees and commissions appear in an offer comparison?
Net proceeds, contractual payback, broker compensation, origination charges, and other deductions can affect a merchant differently. What should be shown side by side?
10 replies
Show gross funding, every merchant-paid deduction, net proceeds, total contractual payback, and payment schedule.
Do not infer a fee from the difference between two numbers. Use the executed or sourced terms.
Broker compensation and merchant-paid fees are not always the same thing, so label each accurately.
Should the comparison calculate cost against gross funding or net proceeds?
Show both calculations with clear labels and methodology so users can see why they differ.
The merchant primarily experiences usable proceeds and required payments, but contractual definitions still matter.
Prepayment scenarios should also disclose whether fees or payback change.
Only calculate a discount when the actual terms support it; otherwise mark prepayment treatment unavailable.
A lender product page can publish common fee categories, but the deal-specific offer remains authoritative.
Display every known component, distinguish compensation from fees, and expose the calculation basis.