changing factoring company due to poor service
A Midlands based manufacturing company contacted us with a tale of very poor service from their existing factoring company who seemed to be unable to keep an accurate sales ledger on their behalf. Due to the factor's inability to allocate payments from customers at least half of the outstanding debts were in the "end column" and therefore disapproved and not funded whilst in the current columns lay the payments received from the customers which hadn't been allocated.
This particular factoring company seemed to have an unusually large staff turnover many of whom promised to tackle this problem of poor accounting but who never actually got around to it before they also moved on.
There are factoring companies who do pride themselves on their high levels of customer service and it didn't take us long to find this particular company a new home.
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
.