GFC FEES AND NET BACK PERFORMANCE
GFC’s culture for 35 years has been predicated on winning liquidity battles in a customer service and compliance minded fashion. We appreciate that price is always a consideration in making important business decisions; however, our agency fee, while typically higher than industry standards, provides the resources to invest in a superior staff, technology, compliance training and monitoring, and employee retention programs. These services have demonstrated over our 35 year history a higher netback rate of return to the client.
In evaluating the performance of agencies like GFC, the most effective and trusted tool is the "Net Back Method". The Net Back method truly demonstrates which agency is returning more cash to the client. The following table is a comparison of the performance of two agencies:
The table shows that, while Agency A charges a 20% fee and has a recovery rate of 15%, Agency B charges a 25% fee but has a higher recovery rate of 20%, which results in a net back of $3,000,000 more to the client. In the net back analysis, Agency B clearly outperforms Agency A even though it charges a higher fee.