Is an electronic signature valid?

Yes; electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and record retention are met. Exceptions exist for wills, certain court orders, and other statutory exclusions.

When should payments be triggered?

Specify objective payment triggers such as fully executed financing agreements, actual funding disbursement, or recorded closing documents. Vague triggers invite disputes; tie payments to observable events and include procedures for partial funding or failed closings to reduce litigation risk.

Do I need a notary or witnesses?

Most finder agreements do not require notarization or witnesses to be contractually valid, but state or industry-specific rules may demand notarization for related documents. Consider notarization where evidentiary value or state law for related instruments warrants it.

How can double claims be avoided?

Define a clear look-back period, require disclosure of prior contacts, add exclusivity or carve-out clauses, and require written acknowledgments from introduced parties. Keep dated documentary evidence such as emails or meeting notes to adjudicate competing claims promptly.

What are the tax reporting obligations?

Obtain a completed W-9 or entity EIN for payees; report payments per IRS rules and issue Form 1099-NEC when required. Failure to collect taxpayer information may trigger 24% backup withholding and potential IRC §6721 reporting penalties.

Can this agreement be e-signed and stored?

Yes; electronic signing is permitted under ESIGN and UETA provided the four-part validity test (intent, consent, attribution, retention) is met. Maintain reproducible records, secure storage, and access logs to satisfy retention and authentication requirements for audits or disputes.

Electronic Signature
Templates
Finance
Financial Finder's Fee Agreement

Financial Finder's Fee Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL FINDER'S FEE AGREEMENT

Parties and Effective Date

This Financial Finder's Fee Agreement (the agreement) is entered into as of by and between:

Finder (the Finder) Finder Address

Client (the Client) Client Address

Recitals and Appointment

WHEREAS, the Finder has contacts and relationships with potential sources of financing, investments, or purchasers suitable for the Client's financial needs; and WHEREAS, the Client desires to engage the Finder to identify and introduce potential financing sources or counterparties upon the terms set forth in this agreement. The Client hereby engages the Finder on a non-exclusive basis to identify, source and introduce potential financial counterparties (each a Potential Transaction) and the Finder accepts such engagement.

Definitions

For purposes of this agreement, "Transaction Amount" means the gross principal amount of financing, investment, or consideration received by the Client in connection with a transaction introduced by the Finder; "Closing" or "Closed" means the date on which the Client and counterparty execute definitive binding documents effecting the Transaction or the date on which funds are funded to the Client in respect of the Transaction, whichever first occurs.

Finder's Fee — Structure and Calculation

The Finder's fee shall be payable only upon a Closing of a Transaction introduced by the Finder and shall be determined as follows. Choose one fee structure (check applicable box and complete the accompanying field).

Percentage Fee

Finder shall receive % of the Transaction Amount (calculated on the gross principal or gross consideration before deductions).

Flat Fee

Finder shall receive a flat fee of payable upon Closing.

Retainer (creditable)

Client shall pay an upfront retainer of which, if a Transaction Closes, will be credited against the Finder's fee.

Payment Terms

The Finder's fee is earned, due and payable to the Finder on the earlier of the date of Closing or receipt by the Client of funds or consideration related to the Transaction. Payment shall be made in immediately available funds within days following the triggering event. Late payments shall accrue interest at % per month (or the maximum rate permitted by applicable law, if lower).

Payment Instructions / Beneficiary Details

Expenses

The Finder shall be responsible for its own ordinary costs and expenses incurred in performing its duties hereunder. Out-of-pocket third-party expenses reasonably incurred by the Finder on behalf of the Client and pre-approved in writing by the Client shall be reimbursed by the Client within days upon submission of reasonable documentation.

Term; Exclusivity; Termination

This agreement shall commence on the Effective Date and continue for a period of months unless earlier terminated by either party upon 30 days' written notice. Termination shall not relieve the Client of its obligation to pay fees for Transactions introduced prior to termination but Closed within months after termination.

Confidentiality

Each party shall keep confidential all non-public information of the other party disclosed in connection with this agreement and shall not use such information except for the purposes of performing under this agreement. Confidential information shall not include information that is or becomes publicly available other than through a breach of this agreement or that is independently developed by the receiving party.

Representations; No Authority to Bind

The Finder represents that it will act in compliance with applicable law and shall not make any binding representations or commitments on behalf of the Client. The Client represents that it has full power and authority to engage the Finder hereunder. Neither party shall be deemed to be an agent, partner, or joint venturer of the other by reason of this agreement.

Indemnification; Limitation of Liability

The Client shall indemnify, defend and hold harmless the Finder and its affiliates from and against any losses, liabilities, claims, damages and expenses (including reasonable attorneys' fees) arising out of or in connection with the Client's breach of this agreement or the Client's negligence or willful misconduct. Except for claims arising from gross negligence, willful misconduct, fraud or breach of confidentiality, the Finder's aggregate liability under this agreement shall be limited to the total fees actually paid to the Finder hereunder.

Governing Law; Dispute Resolution

This agreement shall be governed by and construed in accordance with the laws of without regard to conflict of laws principles. The parties shall first attempt in good faith to resolve disputes by negotiation; if unresolved within 30 days, disputes shall be submitted to binding arbitration in the agreed jurisdiction unless otherwise required by applicable mandatory law.

Notices

All notices under this agreement shall be in writing and delivered to the parties at the addresses set forth herein (or to such other address as either party may specify in writing).

Finder Notice To

Client Notice To

Miscellaneous

This agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements and understandings. No amendment shall be effective unless in writing and signed by both parties. If any provision is held invalid, the remaining provisions shall remain in full force and effect.

Additional Terms or Notes

Finder Name:

By:

Date:

Client Name:

By:

Date:

What the Financial Finder's Fee Agreement Is

Financial Finder's Fee Agreement is a written contract that documents the terms under which a finder or introducer is paid for identifying or referring prospective investors, lenders, or financing opportunities to a company or client. It defines the scope of introductions, the calculation and timing of fees, conditions for payment, confidentiality obligations, and any exclusions or prohibited activities. The agreement helps prevent disputes by setting obligations, termination rights, and governing law for fee claims arising from successful introductions or closed financing transactions.

Why this agreement matters for referrals and financings

Use a Financial Finder's Fee Agreement to clarify compensation, reduce disputes, and document conditions that trigger payment. It provides enforceable terms for timing, calculation, and exclusivity that protect both the finder and the recipient in financing transactions.

Who typically uses a Financial Finder's Fee Agreement

Typical users include brokers, investment bankers, business owners seeking capital, private equity firms, and introducers who match funding sources to borrowers.

Independent finders and referral agents with written placement responsibilities and reporting obligations.
Startups and small businesses seeking introductions to lenders or equity investors.
In-house finance teams using external networks to expand dealflow under contract.

Select this agreement when parties want a limited-scope referral relationship with clear payment mechanics and documented introductions.

Core sections to include in the agreement

Core sections to include in a Financial Finder's Fee Agreement cover definitions, fee mechanics, exclusions, confidentiality, duration, and dispute resolution.

Definitions

Define 'finder', 'transaction', 'closing', and 'introduced party' precisely; specify whether passive leads or active negotiations qualify and set the look-back period for prior contacts and exclusions.

Fee Structure

Specify fee type (one-time, success-based, percentage, or fixed), base for calculation, timing of payment, and whether gross-up for fees or taxes applies, including mechanisms for partial closings and refunds.

Payment Triggers

List precise triggers that create payment obligations, such as signed binding documents, funding receipt, or closing; address staged financings and cures for failed closings.

Exclusions

Exclude prior contacts, public listings, existing relationships, or transactions with counterparties identified in writing before the introduction, and list industries or geographies exempted.

Confidentiality

Obligate parties to protect nonpublic information exchanged, limit permitted disclosures, and state duration of confidentiality including survival clauses after termination with injunctive relief available.

Governing Law

Identify the governing state law, venue for disputes, and whether arbitration or court proceedings will resolve disagreements over fee entitlement and allocation of attorneys' fees for prevailing party.

Step-by-step: completing and executing the agreement

Follow these steps to complete and execute a Financial Finder's Fee Agreement accurately and promptly.

01

Prepare Info: Collect names, EINs, contact details, and prior introductions.
02

Draft Terms: Define fees, triggers, exclusions, and duration clearly.
03

Review Legally: Have counsel confirm enforceability and state compliance.
04

Execute: Sign, date, notarize if required, and distribute fully executed copies.

How to configure an online signing workflow

Configure the online workflow to collect signatures, authenticate signers, and route fee notices automatically and archive.

Field	Configuration
Signature Type	Allow typed, drawn, or PKI-backed digital signatures with audit trail.
Signer Authentication	Use email link or SMS code; enable two-factor for high-value deals.
Routing	Set signer order, auto-forward on completion, and reminder schedule.
Storage	Store signed copies in encrypted repository with access logs.

Where to send and store executed agreements

This describes where to send the Financial Finder's Fee Agreement and common submission destinations electronically.

Internal Records: Upload executed agreement to company contract repository.
Accounting: Send invoice and signed agreement to accounts payable.
Referrer: Provide executed copy to the finder for their records.
Regulatory: File with compliance or legal department when required.

Platform and format considerations for e-signing

Use eSignature platforms that support secure authentication, audit trails, and exportable signed documents for recordkeeping.

Formats: PDF, DOCX supported including PDF/A.
Integrations: Connectors for CRM and storage.
Authentication: Email, SMS, SSO options.

Key dates and timeline items to track

Key timelines tied to Financial Finder's Fee Agreement events and related tax or filing dates.

Agreement Effective Date (Start Date):

Date agreement becomes operative; impacts look-back period.

Payment Due After Funding or Closing:

Specify timeframe such as within 10 business days.

Invoice Submission and Dispute Window:

Include net terms and dispute period of 30 days.

Look-back Period for Introductions:

Define months or years to attribute prior contacts.

Tax Reporting and Backup Withholding:

Provide the W-9 or EIN to avoid 24% backup withholding.

Common preparation pitfalls to avoid

Ambiguous trigger language that fails to specify whether introductions, negotiations, or funding constitute a payable event can lead to disputed claims and litigation.
Undefined look-back periods or prior-relationship carve-outs often result in competing claims over the same counterparty and duplicate fee demands.
Failure to require written authorization or proof of introduction allows finders to assert oral claims without objective documentation.
Neglecting tax and reporting fields such as W-9, EIN, or backup withholding instructions can trigger IRS penalties and withholding obligations.

Penalties, tax risks, and legal consequences

Incorrect Payee Reporting: Penalties under IRC §6721.

Late Filing Penalties: Per-form fines $60–$330 typically.

Intentional Disregard: Higher penalties, no cap (IRC §6721).

Backup Withholding: 24% rate may be required.

Breach Claims: Contract damages and attorneys' fees.

State Variations: State rules can impose extra requirements.

Illustrative examples of fee agreements in practice

Real examples show how finder fees are calculated and settled across transaction types in practice for lenders and equity placements.

Mid-Market Debt Placement

A mid-sized company engaged a finder to introduce private credit lenders for a $10M term loan and documented fee percentage.

Finder's fee: 1.5% on funded amount.
The agreement required payment on funding, included a 12-month look-back for prior contacts, and specified arbitration in the governing state; precise triggers avoided later disputes and detailed invoicing requirements prevented payment delays.

Real Estate Equity Referral

A broker introduced an equity investor to a developer for a multi-site retail project; parties signed a finder agreement documenting split and exclusions.

Fee structure: fixed plus success bonus.
The contract excluded prior contacts, limited compensation to equity portion at closing, and required the broker to provide investor accreditation evidence; explicit milestones streamlined payout and included escrow instructions for fee disbursement.

eSignature plan comparison relevant to this agreement

Compare common eSignature plan elements relevant when executing Financial Finder's Fee Agreements for contract workflows and compliance checks.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	Billed annually; starting at $8 per user per month	Billed annually; starting at $15 per user per month	Billed annually; starting at $14 per user per month	Billed annually; starting at $19 per user per month	Billed annually; starting at $15 per user per month
Free Trial	Yes, 7-day free trial, no card required	Trial varies by plan or evaluation	Trial offerings vary; consult vendor sales	Yes, limited trial available on some plans	Yes, limited trial on select plans
Bulk Send	Available on Business Premium and higher plans	Available on most business plans	Available on enterprise and business plans	Yes; included on commercial plans	Limited or not available by default
Audit Trail	Comprehensive audit trail with timestamps and IP	Provides audit trail and certificate of completion	Full audit trail and signing history	Audit trail with activity logs	Audit trail available with signed record
HIPAA Compliant	HIPAA compliant with BAA available	HIPAA support and BAA options	HIPAA support available with enterprise agreement	No HIPAA compliance on standard plans	Not HIPAA-compliant on standard plans
Envelope Cap	No envelope cap; unlimited send capacity	100 envelopes per user per year limit	Plan limits may apply depending on tier	Plan limits may apply depending on tier	Plan limits may apply depending on tier

Frequently asked questions and answers

Answers to common questions about drafting, signing, and enforcing a Financial Finder's Fee Agreement in the United States.

Need help? Contact support

Is an electronic signature valid?
Yes; electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and record retention are met. Exceptions exist for wills, certain court orders, and other statutory exclusions.
When should payments be triggered?
Specify objective payment triggers such as fully executed financing agreements, actual funding disbursement, or recorded closing documents. Vague triggers invite disputes; tie payments to observable events and include procedures for partial funding or failed closings to reduce litigation risk.
Do I need a notary or witnesses?
Most finder agreements do not require notarization or witnesses to be contractually valid, but state or industry-specific rules may demand notarization for related documents. Consider notarization where evidentiary value or state law for related instruments warrants it.
How can double claims be avoided?
Define a clear look-back period, require disclosure of prior contacts, add exclusivity or carve-out clauses, and require written acknowledgments from introduced parties. Keep dated documentary evidence such as emails or meeting notes to adjudicate competing claims promptly.
What are the tax reporting obligations?
Obtain a completed W-9 or entity EIN for payees; report payments per IRS rules and issue Form 1099-NEC when required. Failure to collect taxpayer information may trigger 24% backup withholding and potential IRC §6721 reporting penalties.
Can this agreement be e-signed and stored?
Yes; electronic signing is permitted under ESIGN and UETA provided the four-part validity test (intent, consent, attribution, retention) is met. Maintain reproducible records, secure storage, and access logs to satisfy retention and authentication requirements for audits or disputes.

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