I have recently been participating in a forum hosted by the factoring.
It was unfortunate that the majority of posters were passionately negative about the invoice factoring industry. Their main gripes seemed to revolve around:
- The work between the invoice finance providers and the insolvency practitioners that they did not believe was in the best interest of the actual client.
- Hefty early termination fees when a client looks to leave.
- Hefty collect out fees levied in the event of failure
- The lack of transparency with regards to pricing and hidden charges.
There were perhaps half a dozen passionate posters on the thread who had suffered bad experiences. This is in comparison to over 42,000 businesses that actually use invoice finance.
However, it does suggest that there are some unsavoury practices within the industry that should be stamped out.
