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Invoice factoring Company

Smart Factoring Quotes were approached by a residential care provider just outside Glasgow.

They were keen to source factoring Scotland. They were paying staff on a weekly basis but were having to wait a considerable amount of time to get paid by the local authorities.

We explored several options for them including full factoring, CHOCS and invoice discounting. As the credit control was not really an issue they decided that factoring was not good value as they were paying for a credit control service they just did not need.

We were able to source an invoice discounting facility that was much cheaper but still met all their requirements.

We have a lot of clients in Scotland and have an excellent network of lenders covering Scotland.

Fixed fee factoring is ideal for businesses looking for a single flat monthly fee when factoring.

Research has shown that small businesses find factoring charges confusing and unpredictable. Fixed fee factoring takes away this confusion by combining all the charges into an easy to understand single monthly factoring fee. It is easy to budget for and provides a valuable boost for the cash flow of a small business.

It is ideal for a business with a fairly smooth cash flow. However, if your turnover is more variable you could find yourself paying the flat monthly fee in a month where you have not had any turnover in which case you would be paying for nothing.

An alternative to fixed fee factoring could be a bundled fee deal. This is a single fee but is charged as a percentage of each invoice with no minimum fees. It is arguably as easy to understand as a fixed fee deal but is more flexible.

When looking for factoring advice I am always amazed at who people approach. I accept that my views may be tainted somewhat as I am a factoring broker but it is what I specialise in and I know and am 100% impartial.

Let’s have a look at who business owners will approach to obtain a recommendation for factoring:

Bank managers – your bank manager will only ever recommend their own bank’s factoring company. They are heavily targeted to sell this product so you will receive a single recommendation not taking into account what your requirement is or what the market can offer. In contrast a factoring broker can look at your requirement and recommend the lenders best placed to meet your needs.

Accountants – unfortunately a lot of accountants take commissions from invoice finance providers (as do invoice finance brokers) The problem is that accountants do not specialise in setting up invoice factoring facilities and often do not look at it as in depth as they should. They will also have a few localised relationships rather than using the whole market.

Brokers owned by factoring companies – some brokers are actually owned by factoring companies. As such guess who they are most likely to recommend? If you are using a broker at least ensure they are independent and impartial.

Brokers owned by insolvency practitioners – this may seem like a strange relationship but insolvency practitioners are keen to be appointed by factoring companies. If they can offer factoring companies new business they are likely to receive more appointments. As such you could find yourself placed with a factoring company they owe a favour to rather than the one best placed to meet your needs.

In my opinion you should be taking factoring advice from a specialist and someone who is 100% impartial and independent.

There are a lot of good brokers in the market who are specialists and totally impartial.

At Smart Factoring Quotes we are totally independent and impartial. We are also specialists as invoice finance is all we do.

We have recently assisted a company in Manchester arrange a factoring facility.

Our client is a security company with a single debtor. While paying wages weekly they were only getting paid monthly at best by their customer who was a larger security company based in Birmingham.

We used a Manchester factoring company because the requirement was urgent so they could react quickly. We knew which local lenders could assist a security company with a single debtor.

The solution was implemented quickly to the satisfaction of our client.

 

Smart Factoring Quotes are proud to announce the launched of their new and improved website.

Our aim has always been to provide business owners with a balanced view on invoice finance. The new site is more informative and we want to be the preferred source of online information for business owners looking for an invoice finance facility. We want to empower business owners to make an informed decision. That informed decision can be about choosing whether or not to use a form of invoice finance, which facility to use or which lender has offered the most competitive terms for their business.

If you are a business owner who is considering entering into an invoice finance agreement or reviewing your existing arrangements make Smart Factoring Quotes your first port of call.

As an invoice finance broker I speak with a lot of businesses who are looking for cash flow solutions for their businesses.

It would be fair to say that their is a real mixed reaction towards invoice finance and especially factoring. A lot of this relates to the perception that factoring is a last resort and I would argue that this is certainly no longer the case.

However, having read various posts on several forums their seem to be some common complaints about factoring companies. These include hidden costs, actual prepayment not been as high as quoted headline rate, reserves and retentions, lengthy contract periods and poor service levels. Unfortunately in a lot of cases I feel that this business owners do have a valid case.

Another area that received a lot of publicity on the FSB forums is the hefty collect out fees and early termination fees that can be levied by lenders. These can often be totally out of sync with the work load required to collect in any outstanding debts and many view these charges as opportunistic.

If you have any valid complaints and you wish to air these experiences we will accept posts on this forum – please use the comment box below. However, we will not allow “witch hunts” so please do not name individuals and please try to stick to the facts.

Northern Ireland has a new commercial finance provider in the form of Keys Commercial Finance.

Keys Commercial Finance are based in Belfast and Brian Sumner who is the ex CEO of Ultimate Finance is an investor and I understand is also mentoring them. They have entered into a back to back finance facility with Venture Finance who in turn are owned by ABN Amro who are a state owned Dutch bank.

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GE Capital have today announced the acquisition of Credit Agricole Commercial Finance.

At the top end of the ABL market this represents quite a serious consolidation.

Rumours about the future of Credit Agricole Commercial Finance have been rife and this hopefully draws it to a positive conclusion. I wish all those concerned all the best and will watch the developments of the coming months with interest.