Risk with Borrowing Private Funds

Over the past two weeks, I have come across 3 different deals from our brokers where they sourced funding for clients. Only for their clients to pay an establishment fee after a letter of offer is issued, to then find out the company cannot fund the deal and retain the paid up "fee".

Unfortunately, most of these groups set up under a name "Capital" with a website that appears legitimate, but at the end of the day have no intention of ever funding these loans just make a quick dollar up front with no regulatory body currently controlling them.

I am aware of two different firms, one in NSW and one in QLD. If you have any doubt contact me on glenn.mitchell@vow.com.au or on 0424 377 572 first for guidance prior to handing over any fees on your client's behalf.

Thank you,
Glenn Mitchell
Head of Commercial & Equipment Finance