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 record an overall average reduction in credit days taken over the last three years to it’s current level of 55.8 days.

To summarise it would seem that clients of factoring companies that do their own credit control managed a 13% improvement over the factors credit control departments but it’s a shame the association don’t split the overall funds invested into factoring and invoice discounting as it would be interesting to know how much extra interest the factoring companies were able to charge due to their own inefficiency.

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