factoring brokers - how independent and impartial is their advice

The role of the factoring broker has traditionally been to advise companies and effect an introduction to the most appropriate factoring company, safe in the knowledge that the advice given is impartial due to the independence of the broker.

All that has now changed with the recent acquisition of one of the largest factoring brokers in the country by the Bibby Factors Group as presumably their advice can no longer be considered to be impartial.

Factoring Solutions prides itself on the impartiality of it’s advice as we are completely independent of any financial ties with any factoring company as per our business ethics statement.

Most companies, assuming that all factoring companies are the same, will take the simplest route and sign up with the subsidiary of their clearing bank without first establishing whether or not there are more suitable options available but unlike most other financial facilities, factoring is the provision of finance geared to a service and that service element is not only highly important but equally 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.

Factoring 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"

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 actually perform.