7.2.18 – A very expensive lunch, three course meal, wine and a two year contract – tim’s weekly funded scenario
All up $240,000.00 plus tip!
tim. was recently asked to submit a proposal providing a full funding solution for a business requiring $500,000 per month.
On following up the submission we had been advised that the potential client had decided to fund with an alternate provider. Well that’s business, but we did ask why and the prospective client explained that the funder had provided a very sharp deal. This surprised our team because tim. had detailed knowledge of the contract and provider and advised that the pricing and terms could not be correct.
A meeting was arranged and the client provided a copy of the terms. No surprise to learn, but the most important clause was buried deep in the convoluted contract, being a “facility fee” of $30,000 per month, plus various other associated costs including an application fee of 1% of the facility limit. Not to mention, a rather significant insurance premium attached, too.
A direct dollar for dollar comparison demonstrated tim. was in fact less expensive by $10,000per month, had no lock in provisions, a higher advance rate and timSecure™ some 45% less expensive.
Whilst the prospective client attempts to extricate themselves from the contract, it is a stark warning that signing contracts over lunch and not taking time to fully review offerings can have a very significant financial downside.
When it is time to review your business funding arrangements then a meeting with a tim. expert is time well invested.
Contact tim. and learn more about flexible funding today and free up your business to grow.