Venture lenders, as with most lenders, will often charge a closing fee. This fee is payable in cash when the loan is funded. For ease of administration the fee is typically reduced from the amount wired to the company with payment of the fee acknowledged by the lender.
For some lenders the closing fee will help to pay internal expenses not charged to the deal. For others it provides a modest return boost and reduction in credit exposure.
In the venture debt market the fee is generally in the 1% - 2% range.