Finding Wrap Clients

Hi,

In the past I have had success in finding potential vendor finance clients by running classified ads in local papers.

I’m not aware of anyone who ‘finds people’ for vendor finance, but if they exist I would want to make sure there was careful due diligence over the selection / qualification process.

In recent times, VF has come under rightful criticism from people who claim that there are some investors who only seek to capitalise and profit from hawking the Great Aussie Dream.

While I suspect only a minority, the reputation of VF was called into question.

I think the concept can still work well, but you MUST make sure it is a win for all parties involved, and the cornerstone to doing this is:

1. Full disclosure of how it all works; and
2. Making sure that the wrap client can comfortably afford the repayments

Just like in bird-dogging, I would be very cautious about just buying a deal as when it comes to investing, more money is made during the management phase than the buying phase.

Happy Easter,