© The Campaign for Regulation of Asset Based Finance. All views expressed are the opinion of the campaign except where specifically stated.
This campaign is not supported by or linked in any way to the asset based finance industry.
The Campaign for Regulation of Asset Based Finance
Factoring Brokerages are not governed by the rules for Independent Financial Advisors (IFAs), they are normally owned by an Insolvency Practitioner or Finance Companies who do not mention these details on their websites, sales literature or when face to face in nearly all cases.
So although they are perceived by the public to be covered by the same checks and balances as IFAs, they are not and do not meet the strict qualification and competence requirements of IFAs.
Therefore factoring brokers do not offer independent financial advice to their clients, there is no reason for them to recommend suitable financial products from the whole of the market or even part of.
Factoring brokers could be guilty of mis-
“We [the insolvency firm] give you a client, you bust them, you get the termination fees and we get the administration,” was how the boss of one invoice finance lender described the “worst cases”.
If you are aware of poor practises by factoring brokerages could you please contact the Secretary at .