Major Bank Owned Factors
Whilst we will never deviate from our ethical approach to broking not every “case history” is a sign of success. We were approached by someone with a two year old company turning over £200,000 that had a large exposure into one customer and he was looking for a factoring facility.
He told us that he had some experience of factoring as his parents factored their own company’s invoices with one of the major bank owned factors but the service they received was poor.
We arranged a meeting with a factor renowned for the quality of their service and having provided him with a bagful of references to contact, including over 20 companies that had transferred to them from his parent’s factoring company, they made him the offer of a facility on competitive terms.
Nothing should surprise us nowadays but we were taken aback when told that he had decided to go with his parent’s factoring company as their offer appeared to be cheaper by a couple of hundred pounds per year.
As a matter of interest this particular factor pays a higher introductory commission than most but we still refuse to introduce business to them.