factoring case histories from Factoring Solutions

Many factoring enquiries that we receive are from companies unhappy with their existing factoring arrangements. This is something that we always find rather sad as it often means that the company has suffered  a comparatively traumatic experiences.

One company with sales of £7.5m and 65% of the business being overseas had a facility with one of the larger independent factoring companies. The main complaint was that funding was being restricted due to unrealistic credit limits being imposed on their customers, including one of £10,000 on a UK high street bank. By this means the factoring company were able to quote a facility of 80% but in actual fact the average funding had been artificially restricted to under 60% of the total debts. It had come to the stage where this profitable company had to reign in their sales and marketing efforts as they couldn't afford to fund any more expansion.

We were able to introduce this company to a factor that didn't operate with ridiculous limits but who undertook to fund every account. By switching factors the company not only released an additional £185,000 into their bank account but at cheaper rates too.

Two enquiries from companies unhappy with their existing factoring arrangements were co-incidentally in similar lines of business but with different factoring companies. Both complained of poor levels of service from their independent factors, mainly in relation to the lack of credit control and we introduced both companies to a factoring company who not only claim to have first rate levels of service but will back up their sales pitch with a guarantee to refund the charges if the client isn't happy with the service for any reason.

Further factoring case studies on next page  further factoring news