Due diligence fees typically should not be asked for (or paid) for an investor to review a business plan/PPM.
The purpose of due diligence fees is to cover an investor`s legitimate costs for background checks and/or other necessary legal work required to review and evaluate the risks/benefits of investing in your company.
Such fees are usually only required after an investor (or VC) has expressed a formal interest in investing in your company(typically via an LOI - Letter Of Intent)
Any due diligence fee request should be made in writing and specify EXACTLY what the fees will cover. The fees should be paid via company or personal check or other traceable means.
Beware of brokers or money-finders who ask for up front fees to assist you in finding investors. First of all, unless they are registered as securities brokers with the NASD, they are not legally allowed to accept fees for selling securities. (A whole other issue).
Also, be advised that a business plan only is not the proper vehicle for raising funds from investors. You MUST have a properly structured private securities offering and comply with SEC regulations to do it legally.
If you want more information on how to effectively and legally raise money from private investors, visit:
"Whether you think you can, or think you can`t - you`re right." - Henry Ford
"All truth passes through three stages. First, it is ridiculed. Second it is violently opposed. Third, it is accepted as being self-evident." - Schopenhauer
Stay positive and think for yourself.
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How To Effectively And Legally Raise Money From Individual Private Investors For Your Start-Up Company Or For Real Estate Investment --