The recession and the bank owned factoring companies
We have been receiving an alarming number of enquiries from clients of RBS Invoice Finance complaining that the goalposts have been moved with factoring facility limits slashed as well as a number of other actions taken that were designed to reduce the amount of funding available.
RBSIF Bank Owned Factoring Companies
Yesterday’s enquiry was from a company that had been factoring with RBIF for 10 years and had always enjoyed the relationship until recently, complaining that not only had the facility limit been cut but that the collection effort operated by the bank had worsened with telephone chasing cut out in favour of computer generated letters that I think we all know are a complete waste of time and money.
I introduced this company to a factoring company that don’t continually move the goalposts and offer an exceptional service and when I discussed the case with my contact there I laughingly opened the conversation with
“I have another disgruntled Royal Bank Invoice Finance client for you”
RBS Invoice Finance and their very high factoring charges
We were contacted today by someone with a small company turning over £300,000 per annum who were about to sign a factoring agreement with RBS Invoice Finance.
The terms that this subsidiary of a company owned by the British taxpayer wanted to handle the five customers of this business was a minimum of £6,000 per annum in factoring commission plus an eye watering £1,500 as a setup fee and an even worse 1% renewal fee at the end of the year if they wanted to continue for another year.
Most people would just sign on the dotted line thinking that the terms were pretty much standard but luckily this person contacted ourselves and we were able to put them in touch with an independent who’s costs are likely to be half of that wanted by RBS