Finance contract brokerage

[Mojo121 229]

Hi chaps,

I was looking at a company today who get commissions through introducing customers to lease/ contract deals. From what I can make out of the website they have agreements setup with the lease companies and I would guess their service involves attracting the customer and getting them to fill in the initial docs. You have to be FCA regulated etc.

I know it's a bit off topic so I'm not sure if any of you will have any information or knowledge about this but I was wondering if anyone knew anything about this kind of model?

An example of this kind of business is:

https://www.leasecomparison.co.uk

[MrV 66]

2 minutes ago, Mojo121 said:

Hi chaps,

I was looking at a company today who get commissions through introducing customers to lease/ contract deals. From what I can make out of the website they have agreements setup with the lease companies and I would guess their service involves attracting the customer and getting them to fill in the initial docs. You have to be FCA regulated etc.

I know it's a bit off topic so I'm not sure if any of you will have any information or knowledge about this but I was wondering if anyone knew anything about this kind of model?

An example of this kind of business is:

https://www.leasecomparison.co.uk

That's the same website as the member on here named "contracts" 

[Mojo121 229]

Just now, MrV said:

That's the same website as the member on here named "contracts" 

Really? Oh! 

In that case hopefully he'll reply... it's top of the list on Google when I searched which is why I've posted.

[Contracts 68]

Not our website but provided by the same people we source ours from as the websites are provided by a third party.

The basic principle is we charge an arrangement fee for every contract we set up.  This can vary but the norm is now only a couple of hundred (some are dragging it lower) so it is more about the volume.  

Over the years the competition in this market has increased as there are quite a few people running small brokerages from home not to mention most dealer groups forming leading divisions.  The main thing is a good customer base as it is hard to pick up new customers due to the amount of competition when you are not selling anything unique.  

Many have seen a major increase in personal leasing however a large number of these customers do not have another contract come renew time, partly due to some finance companies undercutting by offering the rate direct or realising they have spent c.£7k and got nothing for it apart from an outstanding damage recharge invoice.

As a company we are a little more advanced as we also buy our own vehicles to contract hire which gives us a little more control, we also arrange alternative finance on new and nearly new vehicles to suit the client.

34 minutes ago, MrV said:

Edited December 22, 2018 by Contracts