0845 643 9485
Call now for expert advice

Free, instant quote

Free, instant quote

Factoring

07 Jan

Factoring Company Reviews »

by

Factoring company reviews – speak to Smart Factoring Quotes to learn more about the different companies.

Factoring company reviews seem hard to come by. I have done some internet research ans was surprised to find that there was no real forum where feedback was shared.

The danger of course is that unhappy clients shout much louder than happy ones and as such the reviews can be very negative and not particularly objective. I also do not really see it as my place to ‘dish the dirt’ or ‘name and shame’ people or companies.

In my experience there is bad feedback about most invoice finance companies but I also understand that there are two sides to very story. Just because an invoice finance company says ‘no’ to a client doesn’t make them a bad provider yet some clients would disagree.

There are in fairness some common complaints that crop up about certain invoice factoring companies. Some are notorious for unsavoury practices relating to failing businesses while others are constantly criticised for lack of communication and failing to return calls. I will not name them but if anyone is looking for a new invoice finance company I would be happy to have a chat.

Equally if readers wish to share their experiences in a constructive manner then please feel free to post.

28 Nov

Cheap Factoring »

by

Cheap factoring is available from a variety of providers however everything is of course relative. When looking for an invoice finance facility it is important to remember that in some cases the most expensive provider can be 3 times more expensive than the cheapest provider.

It is also important to remember that good deals become available from lenders from time to time and as such the cheapest lender will depend on when you are looking. It is also important to remember that the cheapest factoring provider will also depend on the unique characteristics of your business and it’s factoring requirements.

Smart factoring quotes understand the market and monitor it’s changes. On that basis we can save you time doing research and can also save you money by ensuring the most competitive factoring lenders are introduced to you.

25 Nov

Invoice Factoring – Newcastle »

by

Invoice Factoring – Newcastle

Invoice Factoring is available throughout the UK but which invoice factoring companies have a true presence in Newcastle? Smart Factoring Quotes have an office in Newcastle.

Newcastle was an industrial heartland of heavy industry within the UK but today it is not dominated by large industrial employers. It thrives on the back of local entrepeneurs who have started successful SME’s.

These SME’s require funding and for businesses that sell or provide a service to other businesses invoice factoring or invoice discounting can be an ideal solution.

Newcastle is actively covered by several players. These include Bibby Financial Services, Aldermore Invoice Finance, Lloyds TSB Commercial Finance, Close Invoice Finance and Skipton Business Finance. There are also another dozen or so lenders who are very happy to assist businesses in and around Newcastle.

Smart Factoring Quotes also have an office in Newcastle and a real desire to help local SME’s. If you are an SME in Newcastle looking for a factoring facility it is worth understanding which lender and which product is best suited to your business. Smart Factoring Quotes can help you find both the right lender and the right product – simply contact us on 0845 863 0738 or visit or website. We can assess all the local offerings and also draw on contacts across the UK to find the best solution for the requirements of your business.

Each lender has very different criteria and capabilities. They are each suited to different types of businesses and it is imperative that you select the right lender for your business. Entering into what is typically a 15 -0 18 month contract with a lender that can’t really provide what you are looking for can be very detrimental to you business. It can also be very time consuming and costly.

15 Nov

Factoring – Collect Out Fees and Early Termination Fees »

by

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:

  1. 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.
  2. Hefty early termination fees when a client looks to leave.
  3. Hefty collect out fees levied in the event of failure
  4. 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.

11 Nov

Invoice Factoring – Maximise Prepayment »

by

Invoice Factoring – Maximise Prepayment

We have discussed several times on this blog that headline rates from invoice factoring companies can be misleading. If we put pricing to one side we can look at how you can maximise the amount of cash that your facility will generate.

Debtor Limits – some lender will assess each individual limit while others will only check debtors over 10% of the ledger. It is important you can get funding against your debtors. If you can’t the prepayment level is a red herring.

Minimise Dilution – the higher the number of credit notes you issue the lower the prepayment a lender will offer you. It is therefore important to concentrate on the quality of administration, pick & packing, etc.. to ensure credit notes are kept to a minimum.

Additional Security – lenders may look to increase your prepayment level if you can offer additional security. This could take the form of a personal guarantee, a charge on some unencumbered machinery or a charge against a property. It is really a show of confidence from you as a business owner and offers the lender additional comfort.

Change in Facility – if you have an invoice discounting facility you may get a better prepayment level if you move to a disclosed facility such as invoice factoring. It gives the lender more comfort and as such they may be willing to increase their exposure by increasing prepayment levels.

28 Oct

Factoring Quote – what to look for? »

by

If you have a factoring quote what are the things that you should look out for?

  • Prepayment – this is often quoted as up to and it makes it hard to compare offers unless you have actually had a survey done by a lender.
  • Service fee – look at both the % service fee and minimum fee.
  • Discounting Fee – remember to look at the margin, understand which base rate is being used and importantly what minimum base rate is being used.
  • Audit fees – what are the fees and how many audits a year are required?
  • Dispursements – please understand what they are and also when they are charged. Will they effect you?
  • Take on fee – remember that the service fee is applied to the whole ledger upon commencement so if you are transferring from another lender you could be paying twice.
  • Set Up fee and legal documentation fee – please check these.
  • Understand any early termination fees or collect out fees that can be applied – understand both what they are and when they can be applied.
10 Oct

FSB Factors »

by

I was interested to read on the FSB Forum about factoring, how bad factoring is for businesses and how the FSB should actively advise businesses of this.

I am sure everyone agrees that the FSB promotes the best interests of small businesses. If indeed factoring is the nemesis of the SME then why do the FSB actively promote their own white label to members? FSB Factors is the white label factoring product of the FSB. They describe factoring as ‘ideal for small businesses’ and ‘more flexible than overdrafts’

The service is actually provided by RBS Invoice Finance and prior to 2007 I believe it was provided by Lloyds TSB Commercial Finance.

The FSB obviously feel that there are benefits to businesses in using an invoice finance facility and I agree.

I am invoice finance broker and openly admit that I take commission from invoice factoring companies for arranging invoice finance facilities. I am impartial and independent and I work with the whole market. I believe that this is the only way a broker can operate. The right lender will differ depending on each businesses requirements and circumstances.

So why do the FSB promote a facility via RBS? How do they choose the most suitable provider? What are their motivations?

Well the FSB and most trade organisations have 3 motivations when choosing any of their ‘partners’. Firstly, they want an added benefit for a member. This means that they want an offering that is exclusive to FSB members, i.e. 10% off for FSB members. This justifies joining fees and attracts new members. Secondly they wish to grow membership numbers which is why they look for benefits to members. However, if an organisation can offer them access to businesses who could be potential members this is a big advantage. The larger the membership the more power they have when lobbying. Thirdly they will look to generate income which is put to good use for the benefit of members.

While I have no doubt that the FSB’s actions are aimed at benefiting their members I am not sure that in promoting RBS as a one size fits all solution to invoice finance they are doing the right thing.

The invoice finance market is made up of a variety of lenders for good reason. each one has a unique offering and small businesses should use this to their advantage.

01 Oct

Factoring in Scotland »

by

Factoring in Scotland is readily available for businesses selling to other businesses on credit terms. If you are looking for a factoring facility in Scotland it is worth visiting the Smart factoring Quotes website.

Scotland is serviced by several factoring companies such as RBS, Lloyds, Clydesdale, Aldermore, Close and Bibby. There are also other invoice finance companies that can service Scottish clients. Choosing the right company for your business is however the biggest challenge.

Most factoring companies in the UK are happy to provide invoice finance facilities in Scotland if the entity is a registered company in England as there is no difference to funding a company in England. However, I understand issues arise if the company is a Scottish registered company. I am told the issue relates to registering debentures.

If you are a Scottish registered company you still have a choice of lenders beyond the Scottish banks. If you are a company registered in England then your range of choices is much wider.

If you are looking for Factoring in Scotland it is worth contacting Smart Factoring Quotes to see what your choices are.

Recent Posts

Twitter Updates

    Our Network

    © 2023 Invoice Factoring Forum | Sitemap