Factoring brokers do not always act in the clients best interests

Finding the Most Suitable Factoring Companies

We had an enquiry yesterday for spot factoring / single invoice factoring and having discussed the nature of the company and it’s precise requirements we recommended one particular spot factoring company as being the most suitable for their particular requirements.

The company wanted the initial discussions to be done by email and as both parties copied us in on the exchange of emails we could see that at least three from each had been exchanged by close of play last night.

We have just received an email from the factoring company informing us that they have now received the same enquiry from three other sources which is intriguing.

It isn’t so much the fact that this company seems to have engaged the services of four different factoring brokers that is interesting but the fact that they seem to be completely unaware of what recommendation the other brokers intend to make as they are busily ensuring that their own income is secured first of all.

It is fairly obvious that the company were completely unaware of whom the other brokers were intending to recommend otherwise they would have told them that they were already in negotiations and it is equally obvious that the three other brokers feel that the factoring company that we introduced the company to is probably the best option otherwise they wouldn’t have approached them to see if they already had the enquiry.

Unfortunately they will now introduce them to a competitor who is less suitable or less appropriate otherwise they will lose the prospect of earning from this case.

The moral of the story is that it’s quite likely that any factoring broker that doesn’t immediately tell his client who he is going to put them in touch with will have their own interests at heart and not those of the client

 

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