Factoring in the hidden costs

As well as a poor ledger management service pushing up the overall costs, some factoring companies have a raft of hidden fees and we have come across charges of £80 for the telegraphic transfer of funds as well as one factor who had set an unusually low facility limit with the promise that it would be reviewed on payment of an additional charge of £2,000

Business Invoice Factoring Company Selection Process

Business Invoice Factoring Companies and How To Select The Right One

Selecting a factoring partner for your business isn't as easy as it seems as they all offer the same product on the surface but in reality there are fundamental operating differences between the various factors which is where we come in.

Factoring Solutions is a specialist broker with many years of industry experience. We know which factors are unable to make decisions quickly, which ones are so understaffed that their sales ledger management and credit control is appalling and which ones’ despite claiming to operate a “flexible and personal service” are actually governed by a strict rule book. “Yes” it is a minefield when it comes to picking the right factoring company.

Our years of industry experience are available FREE of charge as we do not charge for either advice or for introducing companies to the most appropriate factoring company for their particular circumstances.

Potential factoring and invoice discounting clients looking for the cheapest deal can be easily mislead as the real cost of the facility can end up being very different to the original forecast.

Some factors including many of the major bank owned names have a credit control service that is so poor (one is actually outsourced to India) that the debtors end up taking much longer to pay and therefore the cost of factoring will end up significantly higher than first thought as the interest element will be much higher.

Another factor might have quoted a slightly higher commission rate but will end up cheaper in practice as their credit control is more effective. We have explained the financial cost penalties of signing up with the wrong factor in our factoring cost comparison

If you would like to deal with a broker that is knowledgeable, unbiased, professional and friendly contact us NOW on 01827 707680

Factoring Solutions