factoring for a recruitment company - case history
A recruitment company that had been using one of the well known payroll / invoice finance companies for over two years approached us as they wanted to change due to a continuing catalogue of errors and inefficiencies. Frequent errors were made on the payroll, payments from customers weren't allocated properly and the credit control was so poor that the recruitment company ended up doing it themselves, otherwise no-one would have ever paid.
We introduced them to a factoring company that was recognized throughout the industry for the quality of it's service and also to a separate accounting bureau that specialised in payrolls. This resulted not only in the recruitment company being looked after in a far more professional manner but they also made considerable cost saving in the process.
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
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