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Lying “brokers”

Pinocchio3Ever tried to obtain an invoice financing quote online? Well if not I would suggest you do not start now. Aside from the fact that matching a lender to borrower is bout far more than bare numbers, a number of these sites appear to be little more than fronts for lazy brokering or even just one lender

To give an example. With a business partner I tested the waters of one site which promised to “Compare” costs. I am not giving the name away …of course

Posing as a straightforward £300k turnover business with a couple of years trading (no other detail was required) we received one quote back from a lender. The quote was a fee of 3.75% of turnover. This was inclusive of interest charges. Thats around £11500 a year. Not cheap

But is it the best available?

Not a chance. If these people are claiming they “explored” the market fully they are liars . Simple as that

There are a handful of lenders who would price at 3% of turnover without blinking. I would be absolutely certain that it would be easy to find a lower price. That is even before anyone has considered that our business might in fact be a very strong prospect.

And how would they know that without asking any further questions?

An absolute disgrace. No wonder so many are calling for regulation

 

 

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