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Draft contracts issued for Refund sale

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Australian Broker | 19 Jan 2012, 05:00 AM Agree 0
A sale may be nearing for beleaguered franchise outfit Refund Home Loans, with three offers for the business reportedly on the table
  • sidbroker | 19 Jan 2012, 12:10 PM Agree 0
    I hope the new owners have a business model in mind that is not based on under cutting every one else in the industry so they can do ok at the expense of everyone else. Given rising costs and less return i think the second refund model will fail as well if they go in the same direction. I can see no logic in any business that refunds and then goes broke. Surely this defies logic and if it did go in the same direction then that should send out warning signals for all to steer clear especially the lenders!!
  • Daniel | 23 Jan 2012, 02:01 PM Agree 0
    The business model did not fail.... the directors failed and completely mismanaged their cashflow and profits(yes it was very profitable). This is not a model that undercuts anyone. The model is using what everyone should be budgeting towards marketing as a 'refund' to the clients and it worked more so as a unique sales proposition than anything else. The refund was only 10% of the upfront comisison and NIL on the trail. Any competition is simply building consumer awareness of our industry as we create our own economic success or failure based on our faith on either outcome. For me, there is an abundance of opportunity and always will be!
  • Melbbroker | 23 Jan 2012, 02:20 PM Agree 0
    ill be glad to never see the name of refund home loans again and any similiar brokerage
  • Rich | 23 Jan 2012, 07:04 PM Agree 0
    To Daniel - Refund was never profitable, it was a great big ponzi scheme where Wayne Orfull used new franchise fees to pay all of hte outstanding bills......
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