Independent factoring brokers – or not
I read on a fellow factoring broker’s blog a warning about the so called independent advice received from some brokers and giving a warning that not all brokers gave independent advice as the ownership of the broker might dictate that introductions be made to factoring companies that suit the broker more than the prospect.The prime culprits would be those broking outfits owned by insolvency practitioners who are fond of introducing leads to those factors that reciprocate with lucrative Administration work.
In addition to the above there are other clues on a factoring broker’s website that may indicate the desirability of working with them starting with the “About Us” page.
Some websites contain details about the principals and their background whilst others waffle on about their mission being to introduce people to the most appropriate factoring company blah blah blah without actually mentioning who they are – why?
On a different tack one high profile broking outfit does have the backgrounds of the broking staff listed (and they are good backgrounds too) and then goes on to say that they don’t charge the factoring company an introductory fee. This should set the alarm bells ringing and people asking “what’s in it for them then” As the parent company is an insolvency practitioner the answer might be obvious to those in the know but less so to others.