We received three enquiries in the same month from companies unhappy with their existing factoring arrangements. This is something that we always find rather sad as it often means that the companies have suffered some comparatively traumatic experiences.
Two of the enquiries from companies unhappy with their existing factoring arrangements were co-incidentally in similar lines of business but with different factoring companies. Both complained of poor levels of service from their independent factors, mainly in relation to the lack of credit control and we introduced both companies to a factoring company who not only claim to have first rate levels of service but will back up their facility with a guarantee to refund the charges if the client isn’t happy with the service for any reason
Another factoring case history
A company turning over £4m with the benefit of a non recourse factoring facility with one of the bank owned factoring companies contacted us. Having suffered a substantial bad debt last year the factors were loathe to pay the client anything as the balance was above the underwritten limit and it took quite a lot of “persuasion” before they paid out the insured amount. To rub salt into the wounds the factor insisted that an independent accountant be appointed to run the slide rule over the company to ensure that they were still solvent and debited their account with £6,000 to pay for it. The company quite naturally feel that the client / factor relationship has been destroyed and despite the fact that it will cost them a significant sum to switch they approached us to find a replacement facility with a more commercially minded factor and not only have we done this but we have also sourced a six figure trade finance facility to run in conjunction with the non recourse factoring facility as well.
The other interesting aspect to the above case history is that it was the third company that had approached us within a short space of time complaining about various aspects of the service from this well known bank owned factor.
Factoring Invoices UK
5 Torridge, Hockley, Tamworth, Staffordshire B77 5QL
Tel: 01827 707680