The state of the Factoring Marketplace

Factoring Marketplace

The factoring marketplace seems to be changing with far less activity happening than in the past. Companies looking for working capital to fund expansion are few and far between as few companies are expanding at the moment and with many of the major factoring companies losing large numbers of clients due to their inability to ride out the recesssion, the overall market is contracting.

Most of the factoring companies are reacting to the changing marketplace by becoming far more selective in the business that they take on and also increasing rates to compensate for the increased risks

What do you think?