factoring case history - speed is of the essence

Factoring was the route that the company who contacted us late in the month wished to take to finance their expansion plans and they wished to proceed quickly. The factoring company that we introduced them to, visited them on two days later and the facility was signed, sealed and setup by the last day of the month.

A different enquiry from a new start company received on a Friday night said that they had every aspect of the new business in place except the funding and asked whether we could move quickly. The factoring company were on his doorstep on the Monday morning and confirmed their offer by fax later on that day.

Factoring

Factoring is now considered to be mainstream lending and has replaced the traditional bank overdraft in many cases but unlike other forms of funding, factoring includes a large element of service and whilst one might think that all factors are the same the truth is very different with many of the major players offering a very poor quality of service that is as likely to hold back their clients' growth as it would advance it.

As we have some very real concerns about the way some of the well known factoring companies operate we have set out some of the pitfalls including details on selecting the factoring company and why the cheapest factoring quote often works out more expensive in practice.