Factoring Solutions UK
Factoring and invoice discounting in the UK is being used by over 47,000 companies, generating a combined turnover running in excess of £170billion, according to statistics released by the factoring companies' trade association. These figures are increasing quarter on quarter.
Most companies, assume that all factoring companies are the same and take the simplest route by signing up with the subsidiary of their bank without first establishing whether or not there are more suitable options available.
Unlike most other financial facilities, factoring and to a lesser extent invoice discounting, is the provision of finance geared to a service and that service element is not only highly important but also highly variable from one factoring company to another and in very general terms the big bank owned factors do not rank well in the service stakes with one even outsourcing it's credit control function to India.
The way that the factoring company operates and the quality of service that it offers is important as it can affect the financial health of their client company and therefore selecting the wrong factor can have devastating effects as we will try to explain.
Despite the importance of selecting the right factoring company it seems that many companies using invoice finance to speed up cash flow still find their factor by looking in Yellow Pages - which is surely why there are so many factors beginning with the letter A - or asking their accountant or insurance broker, who's probable knowledge of the industry comes from the industry salesman who has most recently canvassed him.
It should be straightforward but in reality it isn't and as we have very real concerns with the way that some factors operate we have set out details of the possible pitfalls in the following pages including such matters as "Why some factors offer such a poor service" and "Why the cheapest quote often works out much more expensive in practice" plus details of the hidden extra costs that some factors slip in.
There are no charges for our services and you therefore have nothing to lose but hopefully much to gain by speaking to us as we only introduce people to one of the few factors that actually perform.
For an informal chat, please contact Factoring Solutions without any obligation whatsoever or click on the links for details on selecting the factoring company and why the cheapest factoring quote often works out more expensive in practice.