Many of our enquiries are from companies unhappy with their existing factoring arrangements.
We were approached by a company with a turnover of £7.5m who had a facility with one of the larger independents. The main complaint was that funding was being restricted due to unrealistic credit limits being imposed on their customers, including one of £10,000 on a UK high street bank. By this means the factoring company was able to quote a facility of 80% but in actual fact the average funding had been artificially restricted to under 60% of the total debts. It had come to the stage where this profitable company had to reign in their sales and marketing efforts as they couldn’t afford to fund any more expansion.
We were able to introduce this company to a factor that didn’t operate with ridiculous limits but who undertook to fund every account. By switching factors the company not only released an additional £185,000 into their bank account but at cheaper rates too.
Another factoring case history
We received an enquiry from a company who had decided that factoring was the route that they wished to take to finance their expansion plans and they wished to proceed quickly. The factoring company that we introduced them to visited them on a Tuesday and the facility was signed, sealed and setup by the following Monday.
A different enquiry from a new start company received on a Friday night said that they had got every aspect of the new business in place except the funding and asked whether we could move quickly. The factoring company were on his doorstep on the following Monday morning and confirmed their offer by fax later on that day
Factoring Invoices UK
5 Torridge, Hockley, Tamworth, Staffordshire B77 5QL
Tel: 01827 707680