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 and representing the interests of members” according to the logo plastered all over the home page of their website and has nothing whatsoever to do with the protection of the interests of the 40,000 businesses that factor or discount their invoices.
The FDA used to publish a code of conduct for it’s members but this seems to have disappeared from their website. Most of this code of conduct is probably not of great interest to the general public with the exception of the clause stating that members should not place undue obstacles in the way of a client that is unhappy with the service and who consequently wishes to transfer to another factoring company.
This clause used to amuse me as one of the major bank owned factoring companies had a reputation for being “awkward” with clients that wanted to leave to such an extent that other factoring companies were forced to complain more than once to the FDA who seemed unable or unwilling to do anything about it.