Loan firm hits back at 'failure to deliver'

Finance company Funds4business has hit back at a claim that it had failed to deliver on a loan.

Licensee Jamie Stewart, at the Malt Shovel, near Harrogate, in Yorkshire, told the MA he paid the company around £2,000 to enable him to get a loan.

'They told me I could have a loan in principle and I filled in all the forms and gave them the £250 initial fee. They then told me I needed to get a business evaluation report and it would cost £1,800 and I would get that back on top of my loan.'

Stewart claims that after weeks of unsuccessful attempts to contact the firm, his call was finally returned and he was told: 'We can't do anything for you.'

Funds4business boss Gary Thomas said: 'Mr Stewart estimated the value of his business to be £300,000, but when our evaluation came back from Pinders - it was worth only £65,000.'

Thomas added that it clearly states in its terms of business that administration fees will not be refunded unless a 'true and frank' disclosure has been made and 'all reasonable information is provided to Funds4business.'

'We've had to pay for the evaluation, so he can't have the money back.' Documents provided by Funds4business show Stewart signed a form to say the estimated current value of the business was £300,000.

Stewart added: 'I went through the forms on the phone with Funds4Business and was led to believe the estimated value was for the building, not just the business.'

Any licensee thinking of taking out a loan should read paper-work carefully and contact the National Association of Com-mercial Finance Brokers for advice on choosing a company.