The Asset Based Finance Industries view on a decade of fraudalent behaviour

ABFA Annual Conference 2015 - Birmingham Symphony Hall and Birmingham Botanical Gardens - 2-3 June

We have demonstrated outside Parliament and BIS - To date we have not highlighted our clear message at an industry event - This would be too good an opportunity to miss.



So shall we have a demonstration?

Please email ABFADemo@rabf.org..uk with your thoughts

Re-introduction of Crown Preference to spike Asset Based Lenders and put an extra £200M into the Treasury

The campaign as soon as the new Government is formed will be highlighting the loss of income to the Treasury of £200m annual loss which goes straight to bankers at the expense of the tax payer.
 

In case after case banks and asset based lenders are closing solvent companies so that they can gorge on the funds that should have gone to the tax payer - The sums of money that HMRC are losing in insolvency after insolvency are significant.

Why Accountants, lawyers and Brokers recommend Pulse - Not to help you but for mouth watering commission!

Introducers

Make more from your introductions

Pulse offers you as business introducers a unique opportunity to expand your service offering.
Our invoice finance products provide one of the fastest turnarounds in the market. There are no credit committees to arrange and no audits required, just a simple lending decision based on the quality of the sales ledger, not the clients historical performance. You will receive an instant ‘subject to’ decision and kept informed not only through the application process, but during the time that a client relationship is maintained with Pulse. Finance can be quickly approved for factor manage-aways and turnaround situations or where other lenders have rejected.

To expand your service offering and find out more about our lifetime commission scheme

ADMIN: WE ARE STILL CONTINUING TO GET HARROWING CASES INVOLVING PULSE!

What Jesus would have done to the crooked asset based lenders, insolvency practitioners and lawyers - the axis of evil of factoring

The campaign to stop the continued abuse of SMEs and the taxpayer was taken to the heart of Government by campaigners

Martin Donnelly the Permanent Secretary at BIS is now fully aware of the abuse within the asset based finance industry of solvent SMEs forced into insolvency by criminal factoring companies to profiteer at the expense of the taxpayer - Part of the 'alternative funders initiative'

SME owners to demonstrate at BIS over decision to encourage use of unregulated asset based lenders

 

Small business owners from all over the UK will be converging at the offices of the Department for Business, Innovation & Skills (BIS) to highlight the unregulated structure of the asset based lending industry (factoring/invoice discounting), one of the key finance sectors of the Government’s ‘Alternative Funders Initiative’.

BIS is promoting the ‘Alternative Funders Initiative’ to SMEs that have been turned down for a conventional loan or overdraft by the banks. The main beneficiary of this is the unregulated asset based finance industry, which incorporates factoring and invoice discounting, where the company borrows typically against 70% of the value of an invoice.

Campaigners are going to demand to speak to the Permanent Secretary, Martin Donnelly, to point out that all of the examples given to the Minister in the Tomlinson Report were SMEs that were financed by the banking sector, such as RBS GRG and therefore already protected by the Prudential Regulation Authority (PRA). The factoring/invoice discounting finance sector is only covered by the Sales of Goods Act  – the same legislation as pawnbrokers.

The asset based finance sector funds around £300bn worth of invoices annually for businesses, in turn employing approximately one million people. The industry has been rocked by a series of scandals over the forced insolvency of solvent companies, with finance companies then profiting from the sale of the assets of the company.

A factoring company can easily make up to £500,000 through a secured creditor at the expense of HRMC, normally the largest unsecured creditor due to the removal of the Crown Preference.  The industry’s trade body launched its own Ombudsman Service with a maximum fine of £25,000 for the factoring company.

Campaigners will be highlighting the advice from Andrew Bailey, Deputy Governor of the Bank of England that will put 70% of lending under the control of the Prudential Regulation Authority without any additional costs or regulatory requirements through the simple amendment of existing legislation.

Brian Moore, Spokesman for the campaign group, Regulation Asset Based Finance (RABF), says it is madness that an SME can be protected by the PRA for a loan or an overdraft borrowed from a bank: “To then act on advice from the Government for an alternative funder, borrow from the same bank (or any other asset based lender) via a factoring agreement and only be covered by the Sale of Goods Act.”

Brian adds that the factoring industry has for years been a fraudsters dream: “Any fraudster can set themselves up in the industry and persuade the SME to sign a contract without lending a penny and in some cases put them into insolvency at the expense of the HMRC.

“We have seen company after company closed for their assets both by the banking and non-banking sector. We are calling on Martin Donnelly to brief the incoming Secretary of State on the lack of regulation in the factoring industry, and the need to implement the suggestions from Andrew Bailey to bring 70% of the lending under the umbrella of the PRA.

“We will be demanding that the unregulated asset based finance industry is removed by BIS as a recommended alternative lender until the subsidiaries of the banks are covered by the amended legislation as recommended by the PRA,” Brian concludes.