28/11/2016
FE Week recently published an article titled “Brokerage of apprenticeship funding to be banned next year”, it talks about this secretive industry where brokers of apprenticeship funding earn millions by charging up to five per cent commission on any agreed deal.
By definition a broker is someone who buys and sells goods or assets for others. They provide a service, offering opportunities to their clients that they may not have had on their own.
We live in a world where often it’s more about who you know than what you now and those connections can prove valuable, as is the case for brokers.
Reading into the article, the key change to the rules is that “from May 1, 2017, no government money can be used to pay brokers’ fees”.
Will this affect our clients, well we don’t think so.
As Quattro Consultancy we offer a service, adding value to our clients operation and as such we are paid from the profit they make running their businesses.
We provide more than a just an introduction, we work with both side of the agreement to ensure the best possible fit. We support the due diligence process and negotiation of the contract, saving both parties time and hassle whilst minimising the risk of contract failure down the road.
Indeed, the amount of time, effort and cost associated with providing this service is substantial. Let’s face it, if it was as simple as just submitting a set of documents between prime contractor and training provider, the market would be saturated with “have-a-go brokers”, but everything starts with building relationships and demonstrating competence and understanding.
At Quattro, we are confident in our ability to deliver, which is why we do not charge anything until the contracts have been signed, charges that are certainly not 5% of contract value.
And bear in mind it can be a good one to three months’ work (and the associated costs) before any final agreement is reached between parties, it’s a risk not to be taken lightly.
