Angelo Trapasso, director of the firm says the brokerage was heavily impacted by the withdrawal of secured lender Welcome Finance in January.
Loandistributor.co.uk revealed this morning that 1st Stop Group has put its credit brokerage 1st Stop Finance into administration also as a result of Welcome Finance ceasing lending.
Trapasso says: “Welcome stopping lending was the killer for us, that along with Paragon cutting down its lending and mounting Payment Protection Insurance claims meant we could no longer continue.
“Even if we had been able to make any money we would have had to pay it all to ambulance chasers.”
Trapasso says it paid all its 20 staff before closing down and left the market with money in the bank.