Factoring case history
A
company turning over £4m with the
benefit of a non recourse factoring
facility with one of the bank owned
factoring companies contacted us. Having suffered
a substantial bad debt last year the
factors were loathe to pay the
client anything as the balance was
above the underwritten limit and it
took quite a lot of "persuasion"
before they paid out the insured
amount. To rub salt into the wounds
the factor insisted that an
independent accountant be appointed
to run the slide rule over the
company to ensure that they were
still solvent and debited their
account with £6,000 to pay for it.
The company quite naturally feel
that the client / factor
relationship has been destroyed and
despite the fact that it will cost
them a significant sum to switch
they approached us to find a
replacement facility with a more
commercially minded factor and not
only have we done this but we have
also sourced a six figure trade
finance facility to run in
conjunction with the non recourse
factoring facility as well.
The other interesting aspect to the
the above case history is that it
was the third company that had
approached us this year complaining
about various aspects of the service
from this well known bank owned
factor, and we are still only two
months into the year.
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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