Factoring case history
Three of the enquiries that we
received in the first month of the
year were from
companies unhappy with their
existing factoring arrangements.
The first company had a turnover of
£7.5m with 65% of the business being
overseas and they had a facility
with one of the larger independents.
The main complaint was that funding
was being restricted due to
unrealistic credit limits being
imposed on their customers,
including one of £10,000 on a UK
high street bank. By this means the
factoring company were able to quote
a facility of 80% but in actual fact
the average funding had been
artificially restricted to under 60%
of the total debts. It had come to
the stage where this profitable
company had to reign in their sales
and marketing efforts as they
couldn't afford to fund any more
expansion.
We were able to introduce this
company to a factor that didn't
operate with ridiculous limits but
who undertook to fund every account.
By switching factors the company not
only released an additional £185,000
into their bank account but at
cheaper rates too.
Invoice
discounting is currently being used
by almost 14,000 companies
generating combined turnovers of
nearly £115 billion and it is this
method of invoice finance that is
experiencing the most growth at the
moment. Our reservations about the
activities of some invoice
discounters are as valid as in
factoring and we would be grateful
if you could click on the link to
see our areas of concern about
invoice discounting
Trade Finance is an area of business funding that co-exists alongside bank overdrafts, factoring and
invoice discounting providing specialist finance to facilitate trade and you
can read more about the types of
facilities that we can arrange by
clicking on the link for
trade finance pages
Factoring Invoices
UK
5 Torridge
Tamworth
Staffs
B77 5QL
Tel : 01827 707680
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