Home > Uncategorized > The danger of bad advice

The danger of bad advice


Last week I heard a familiar tale.

A recruitment company has just signed up to an invoice financing deal and quickly found that they are being hit with all sorts of charges as well as being unable to draw down sufficient cash due to restrictions 

They were placed with this lender because their accountant informed them that he had a “special relationship”. 

Yes really.

The special relationship is of course nothing more than the fact he gets commission without having to do the legwork to explore the market. No doubt he gets a few nice days out too

There are 40 or so lenders in the invoice financing market. They vary enormously on terms and facilities. Maybe this accountant can do some maths

The maths are? The chances of his client getting the best possible deal is one in forty. Or 2.5% 

The client is stuffed and the accountant has received commission for frankly doing very little. I would also suggest that his ability to negotiate and find the best solution would be minimal. 

That takes time and resources as well as a constant exposure to an ever shifting market. Its also enjoyable too. Finding a real solution for a borrower is very satisfying.

And yes that is my role

But if you were this client what would you be thinking? If you knew? 

And where would you tell the accountant to go?



Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: