Factoring Interest Rates Factoring companies are now advertising interest rates of 0.5% over Base Rate but many people reading the adverts fail to realise quite what a clever marketing ploy it is. Taking a typical small company with an annual turnover of £500,000 the customers averaging 60 days to pay and the factoring company funding […]
Category: News
Factoring Companies Credit Control Worsens Yet Again
Recently released figures by the factoring companies’ trade association show that the average credit days taken by factored customers has worsened for the fourth year running from 56 days in 2003 to 63.1 days in 2007. Whilst some may put this 13% worsening down to the economic climate it is interesting that invoice discounting clients […]
Factoring for Your Recruitment Company
Factoring and the Recruitment Industry The word on the grapevine is that yet another of the high profile companies that offer both back office and “factoring” is about to collapse leaving many of it’s client companies in the lurch. Whilst I can understand the appeal of outsourcing the payroll administration I am very dubious of […]
Trade Finance – Where to Find the Right Choice
Cash flow problems? Consider trade finance Following on from last month’s note on trade finance we received a couple of interesting enquiries illustrating how little knowledge in the broker market there seems to be about this type of finance. The first company had only been trading for a few months with an innovative product that […]
Factoring Companies Need to get More Personal
Factoring companies lack the personal touch and lose their clients as a result We found that the enquiry level for for factoring in June remained at high levels despite distractions like the World Cup and summer finally arriving and whilst we had our usual crop of enquiries from companies dissatisfied with the service that they […]
Factoring in the World Cup
Interesting factoring enquiry We had an interesting enquiry in April from a company who had a huge order from a single customer for England World Cup flags. When asked what his anticipated turnover would be his reply was that it all depended on how far England progressed…
FDA – Factors & Discounters Association
FDA – what is it good for (with apologies to Pink Floyd) Many brokers, introducers and accountants etc when discussing factoring will advise companies to select a factoring company that is a member of the Factors & Discounters Association which I find rather strange. The FDA is a trade association who’s prime function is “Promoting […]
Factoring Continues to Grow in UK
SME Statistics and Factoring Statistics recently released by the UK factoring industry’s trade association show the continued growth in the receivables finance market in the UK with 43,000 companies using factoring or invoice discounting at 31st December 2005 and generating a combined turnover in excess of £160billion on an annualised basis. This steady increase in […]
High Street Banks – don’t you just love them?
Success Story failed by Factoring Subsidiary of High Street Bank Last week we had an enquiry from an importer and distributor of furniture who despite having a successful relationship for three years with the factoring subsidiary of a well known high street bank was now suffering from cash flow problems. Their crime was apparently that […]