How do people decide which factoring company to go with?
Amongst the factoring enquiries received in March were a couple that decided not to go along with our recommendation.
The first was a new start recruitment company and having discussed his requirements extensively we introduced them to a factoring company known for their high service levels having stressed that they also offered a refund of all fees paid if the company were unhappy with the service levels.
When they later informed us that they had decided to go with an alternative factoring company that they had sourced elsewhere we were somewhat surprised as we had never heard of them. A little investigation turned up the fact that they had rather an “interesting reputation” and quite possibly it won’t be too long before that company becomes another of the insolvency statistics by the time the factor has finished with them.
The second enquiry was somewhat larger and told us that they had an appointment with the factoring subsidiary of their bank but having read our website they were a little concerned about the possible pitfalls and thought that they might do better with an independent.
We introduced them to an independent factoring company who we thought would be far more suitable for them but the factor had difficulty making contact with them as he never returned calls.
Finally today he was told that a meeting wouldn’t be worthwhile as they had just signed up with the bank’s factoring company. I wonder why having asked whether something more suitable existed he didn’t bother to make time to talk to a company who may well have been more suitable, especially when it is something as important to a company’s health as a factoring facility.