single debtor factoring
Factoring companies like a spread of debtors and historically have been loathe to offer facilities to companies that didn't have a range of customers. Times have changed and one or two of the factoring companies are now showing flexibility in this direction and will now offer factoring where there is only a single debtor, depending on industry, paper trail and the credit worthiness of the customer.
So far this year we have found a home for a sub contract courier company with a well known logistics company as it's only customer, an importer of snack foods, again with only the one customer and even a sub contractor in the construction industry with a single customer making up 90% of turnover.
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
.