Factoring

Factoring and invoice discounting has grown phenomenally in the past few years as banks have moved further and further away from the more traditional overdraft preferring instead to try and palm the lending off onto their factoring subsidiaries where the security is better and the returns higher too.

Factoring involves a large element of service (unlike overdrafts) and the factoring company will be making a number of decisions on a daily basis that will affect the relationship that their client has with his customer as maintenance of the sales ledger including credit control is part and parcel of a factoring facility.

All factoring companies seem to offer the same product on the surface but in reality there are differences in operation that in some cases can be quite profound although this is seldom explained in advance.

Additionally the service itself offered by some factoring companies is of very poor quality with non existent credit control, poor ledger maintenance and a string of restrictions designed to ensure that their customers never receive the funding levels that they quite expected.

As possibly the most experienced independent factoring broker around we know which factoring companies make promises that they cannot keep, which ones burden their staff with so many clients that they cannot offer a decent sales ledger service, which ones set abnormally low credit limits on their clients’ customers in order to keep the funding levels down and which ones will quote low rates to the unwary but have a raft of hidden fees to bump the overall costs up.

It should be straightforward but in reality it isn't and often the factoring quotes given by the factor only tell half the story with the cheapest quote frequently working out more expensive in practice.

There are no charges for our services and you therefore have nothing to lose but much to gain by speaking to us as we only introduce people to one of the few factoring companies that do actually perform as they promise.

For an informal chat, why not contact us without any obligation whatsoever