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 to introduce them to one particular company partly as they were fairly close but to my surprise they turned it down as the director wasn’t a property owner. Whilst I can understand the reticence to deal with “men of straw” if it’s a new company and nothing much is known about the individuals but in this case we are talking about a well established company who had been factoring for the last two years with one of the big boys.
I contacted a second factoring company who also have a reputation for the quality of their service but whom I didn’t give this lead to initially as my contact was a couple of hundred miles away and asked whether they would look at a company who had been trading for five years, factoring for the last two but where the director didn’t own his own home – to be told quite refreshingly that in the circumstances they would be delighted to look at it.