factoring case history
factoring and invoice discounting enquiries continue to increase and some of them have been more unusual than normal including the following:-
We were approached by a company supplying medical reports to solicitors in support of accident claims etc. They had a tight cash flow as the solicitors didn’t want to pay their accounts until the cases had been heard in court and that could take up to 18 months. Normally factoring companies will only finance an invoice for four months or in exceptional cases 6 months but we were able to source a facility with one of the major names that incorporated the benefit of 12 months credit and this will give the company sufficient funding to allow them to expand sales significantly.
Two months later we were able to repeat the exercise for another company in the same area of business.
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