factoring exports and export finance solutions

Factoring is now big business with  over 40,000 uk companies factoring or discounting their domestic sales or exports, generating a combined turnover in excess of £132billion with the factoring of exports being one of the major growth areas - according to statistics recently released by the trade association. These figures are increasing quarter on quarter.

An interesting statistic (unfortunately not available) would be how these companies select the factoring company with which to entrust the financial health of their business, as selecting the wrong one could have devastating effects. 

It would seem that the majority of  companies factoring export debts to speed up cash flow take the simplest route and sign up with the subsidiary of their clearing bank ( approx 70% ) without first establishing whether or not there are more suitable options available.

The rest entrust their company's financial well being to a factoring company selected in a variety of ways ranging from looking in Yellow Pages -which is surely why there are so many invoice finance companies beginning with the letter A - to asking their accountant or insurance broker, who's probable knowledge of the industry comes from the factoring company 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"

Please click on the links for details on selecting the factoring company and why the cheapest factoring quote often works out more expensive in practice.

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