finder's fee

A finder’s fee is a commission paid to a person who identified for, brought to the attention of, or facilitated a business transaction between interested parties. In general, a finder’s fee is paid to a person that acted as an intermediary among parties that would not have made the deal or transaction without such intermediation.

Depending on the type of transaction or the agreement made by the parties, the buyer, the seller, or both parties may have to pay the finder’s fee. In any case, the terms and conditions of payment of a finder’s fee are commonly regulated by agreement between the finder and the party that shall pay the finder’s fee.

Finder’s fees may be suitable for many types of industries and businesses. For example, finder’s fee may be used in the context of finding financial investors for new businesses or new employees for companies, or in real estate or mergers and acquisitions transactions, among others. 

[Last updated in July of 2021 by the Wex Definitions Team]