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TRF News interview about Urica and Advanon frauds

Wed 29 Aug 2018

Our MD talks to TRF News about the recent frauds which involved Urica and Advanon.

"The advent of fintech has bought a fresh dynamic to lending allowing borrowers to access cash quickly and for private investors to invest in businesses that they believe has growth potential. But all is not necessarily as it appears.

Fintech has reduced the time from application to lending to such an extent that the borrower has first mover advantage and a well-constructed 'professional' fraud can leave a lender painfully exposed irrespective of how good the due diligence process may have been.

The consequences for all are uncomfortable because whilst platforms give the investors opportunity to participate in a range of deals the nuances of the product and the fine detail are likely to be lost to all but those with knowledge of receivables financing.

The recent frauds suffered by Urica and Advanon damage the reputation of receivables financing, yet it is a superb way of providing young growing businesses with accelerated working capital facilities.

Know Your Customer has never been more important and the time trusted pillars of debt, debtors, financials, management and systems remain key to mitigating risk. The final element that all lenders need is luck!" said Aaron Hughes, Managing Director of Equiniti Riskfactor.