Many factoring companies make promises that they cannot keep and we now seem to be spending increasing amounts of time rescuing companies from poor factoring relationships and placing them with factoring companies that actually offer the flexible, professional and personal service that they promised. Small businesses often come to us for help changing Factoring Company.
The main reasons that companies are not happy with their factoring companies include the following:-
- They were promised a professional service but the sales ledger management and credit control was particularly poor.
- They were offered a flexible service whereas in reality their every actions were governed by a strict rule book
- They were offered a personal service but ended up having to discuss their account with someone different every day
- They were offered a competitive factoring quote whereas in reality the actual cost was bumped up by a whole range of unforeseen extra charges.
And worst of all, they found that their cash flow was restricted by a range of artificial funding and credit limits imposed on them.
Some factoring companies do outperform others
Factoring Solutions have more years of industry than most and unlike other brokers our experience and background is on the operational side and not sales so we know which factoring companies insist that their staff handle twice the workload of others resulting in a second rate service.
We know which factoring companies offer potential clients the earth but once the ink is dry on the agreement the operations staff refer to the “procedure manual” and we know which factoring company will offer a much lower rate than anyone else but will end up costing more due to the fact that everything is extra.
It should be straightforward but in reality it isn’t and as we have very real concerns with the way that some factors operate we have set out details of the possible pitfalls here.
There are no charges for our services and you therefore have nothing to lose but much to gain by speaking to us as we only introduce people to one of the few factoring companies that actually perform. For an informal chat, please contact Factoring Solutions on 01827 707680 without any obligation whatsoever.