Anonymous from Aberdeen wanted to know from SuperSpark what the consequences of doing an invoice deal were.

SuperSpark replies:

Dear Anonymous,

With a sluggish economy and slow economic growth, many dealers are feeling the pinch. Each transaction we do is important and at the same time we need to keep costs down and ensure maximum returns.

This is why some may be tempted to do “invoice deal/selling”. I, would however, strongly caution our members against the temptation to supply invoices to dealers who aren’t approved by the banks.

Not only does this practise go against the code of conduct of the IDA, it also has serious repercussions for the seller.

Bear in mind that the seller takes responsibility for the article as stipulated by the CPA. When the finance house or bank becomes aware of this you will have to stand in for the transaction.

Dealers who engage in such actions are supporting and boosting their own competitors. The banks have taken a strong stance and won’t hesitate to cancel or terminate such dealers’ codes.

So, let’s do the right thing and rather spend the effort in building our own business.

Best, until next time (gotta fly...)

SuperSpark