Factoring Solutions Blog News, views and gossip from the world of factoring, invoice discounting and trade finance

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

Posted under RBS Invoice Finance, factoring

“Company Liquidation Set For Dramactic Rise If Debt Factoring Is Not Utilised” (sp) must rank as one of the daftest and most inaccurate sales pitches that I have come across. This was the interpretation put on a press release from R3 the insolvency trade body that said that business insolvencies are likely to increase substantially next year.

The rather desperate blogger’s interpretation was that “some of the biggest reasons for business failures is lack the lack of demand for their product or service or the Company’s ability to have sufficient working capital”

How on earth this rather desperate factoring blogger  managed to drum up his very dramatic headline out of that I do not know but let’s hope that the service that he provides to his customers is of higher quality than his blog posts

Posted under factoring brokers

The Chief Executive of the British Bankers Association together with Lord Mandelson told the first meeting of the Government Small Business Forum two days ago that “The UK’s leading banks are committed to helping Britain’s businesses to weather the economic downturn” and that “The UK’s banks want to see their customers flourish even in these testing times. We are determined to help our customers make the most of their businesses and part of that is to ensure they have access to finance as well as independent advice and help when times are tough”

At the same time the factoring division of Bank of Scotland was busy telling one of it’s customers who had the temerity to try and leave after being with them for over two years that they could either wait nine months until the third anniversary of their factoring agreement or stump up with a large fee to buy themselves out of it.

It’s interesting to see that in the day and age of easy in, easy out factoring agreements Bank of Scotland are still trying to handcuff their customers to stop them getting away.

Posted under Bank of Scotland, factoring