factoring case history - poor levels of service
Factoring Solutions
received three enquiries in the same
month recently from
companies all unhappy with their
existing factoring arrangements.
Inevitably this means that the
company is suffering cash flow
problems caused by their factoring
company's inflexibility or
substandard performance.
Two of the 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.
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.
Invoice Discounting
Invoice discounting is currently being used by almost 14,000 companies generating combined turnovers of nearly £115 billion and it is this method of invoice finance that is experiencing the most growth at the moment. Our reservations about the activities of some invoice discounters are as valid as in factoring and we would be grateful if you could click on the link to see our areas of concern about invoice discounting
Trade Finance
Trade Finance is an area of business funding that co-exists alongside bank overdrafts, factoring and invoice discounting providing specialist finance to facilitate trade and you can read more about the types of facilities that we can arrange by clicking on the link for trade finance pages
.