Home > Uncategorized > I am being undercharged…?

I am being undercharged…?

Last week I met two excellent account managers from an invoice financing firm that has had its recent ups and downs but appears to have a clear path to recovery. They had some interesting products including one geared towards new recruitment businesses. The terms were very good indeed

Recruitment does lend itself to relatively low cost invoice financing because of the relatively low risk, ease of management together with little scope for disputed items, but how low can you go?

Today I have heard of another lender who has indicated costs to a client which are even lower still. In fact it is difficult to understand where their margin is in the transaction. This allied to the fact that the lender has sometimes had a mixed reputation, certain questions come to mind

The quote (although in fairness I haven’t actually seen the detail) was so low that it is hard to see what is in for the lender. It barely seemed to cover the expenses of a meeting and setting the thing up, let alone the admin for the coming year, so how will they make their money?

This is where I fear that the borrower may need to take some careful advice. As with solicitors that promise the earth for very cheap headline rates, it is the ongoing charges that quickly mount up and can become quite eye watering.

Of course I am not saying that this is the case with this lender but they have to make their margins somewhere

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