Recently a client came to us with a deal to review. They told us that they only wanted to deal with there current company because they trusted them.Which is not a problem, we recommend that. The problem was that we found that this company they trusted so much was taking $4000 more than the the companies were taking. Of course we told her, and that the average should be $4000 more based on a comparison. That was when we were told they only wanted to work with their current company because they trusted them. We also advised that the county in which they were doing this deal in was highly conservative and that is why the other companies are giving the payees more money. But since they were the client it was whatever they wished. We wrote an opinion letter to get it to pass through the court.

Unfortunately just as we had advised in our original Independent Professional Advisor consultation, the judge rejected the transaction due to the interest rate being too high.

Now most of the time the deals go through with out a hitch, but in our experience we have learned to keep a data base of  courts and hat they expect. It is much easier t change a deal to get it to fit into the courts desires before it gets to the judge than to change t later.

See we believe being an Independent Professional Adviser means more than just sending out a form letter and collecting the fee.

If you are truly acting in the best interest of the seller than it is your duty to make sure that the rates they are receiving are not only consistent to the market, but within the guidelines of what the courts will approve. The factoring companies do not always like s for that reason at the time.

But in a case like i mentioned above the factoring is wishing they had listened, it’s like that old saying spending dollars to save pennies.