Factoring and insolvency practitioners

Chatting to a another friend from a different independent factoring company yesterday and he told me about the prospective client who had agreed terms etc but a closer look showed him to have the sort of financial problems that would be better served by closing the company down and restarting.

The prospect chose their own insolvency practitioner who promptly got another factoring company involved on the basis that he wouldn’t receive any commission from a deal that he hadn’t introduced.

Unethical?   Just a bit

 


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