Textile Company raised Fraudulent Invoices There was an interesting article in a North West regional newspaper this week about a couple of company directors who have been banned from running a company after being caught out defrauding a factoring company. Administrators were appointed to the textile company two years ago and it would appear that […]
Category: News
Treasury Leads Inquiry into Invoice Abuses
The Government is investigating invoice abuses of the administration process by invoice finance providers, following an investigation by The Telegraph The Government is investigating “abuses” of the administration process by invoice finance providers. The Treasury and the Insolvency Service have begun the inquiry into the unregulated industry following an investigation by The Telegraph that revealed […]
Factoring 101
What is Factoring Factoring is where a company submits copies of sales invoices to the factoring company who in return makes available a pre-agreed percentage (up to 85%) of the value of the invoices for immediate drawdown. The factoring company maintains the sales ledger on behalf of the client and will contact the customer for […]
How to Compare Costs on Factoring Quotes
A quick guide how to Compare Costs on Factoring Quotes Here Ian Johnston of independent broker, Factoring Solutions, looks at how one offer on your factoring costs might look like a good deal but a closer look at your figures, and knowing what to look out for, can save a company a lot of money. […]
Factoring and Invoice Finance Breaking Records
Invoice Finance Figures for the third quarter of the year show that companies using factoring and invoice discounting facilities generated sales of more than £71bn which is the strongest ever quarterly performance and a 14% increase on the same period last year. The 43,000 companies using invoice finance had total advances out to them of […]
Factoring Companies ‘Profit’ from Company Failures
Factoring companies are “profiting” from putting clients into administration at the expense of the taxpayer and other creditors, according to allegations made by business owners, industry insiders and a campaign body. Brian Moore, who leads a group calling for the regulation of asset-based lending, said he is preparing a submission to the Parliamentary Commission on […]
The FAQs you Should be Asking Factoring Brokers and Factoring Companies?
What sort of questions should I be asking of factoring brokers and factoring companies? The above was a question asked on the ukbusiness forums recently and I have reproduced the answer given as I think that it may be of interest. “You’ve actually got the wrong end of the stick as most factoring companies will pay […]
Stupidest Factoring Sales Pitch of the Week
“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 […]
Finding it Difficult to Leave your Current Factoring Company?
Factoring Company Rules There are many reasons why one would want to change their factoring company with the main one being that the facility isn’t performing as well as expected. In times of old the ABFA published the rules and regulations that their members agreed to abide by and one of those rules was that […]
Factoring where the Director isn’t a Property Owner
I had an enquiry yesterday from a company that had been trading for five years and had been with a bank owned factoring company for the last two. The company was profitable and turning over £750,000pa but had complaints about the service levels from their factor. I mulled it over in my mind and decided […]