Invoice Factoring

[GRAV888]

Does anyone have any experience of factoring, or know anyone that does it?

 

[Alfie]

Does anyone have any experience of factoring, or know anyone that does it?

Most of the major banks will do it through a subsidiary.

Hope this helps.

 

[GRAV888]

Most of the major banks will do it through a subsidiary.

Hope this helps.

Tried this route, but need to cut out the 'middle man'. The banks wanted toooooo much comission

 

[Alfie]

Tried this route, but need to cut out the 'middle man'. The banks wanted toooooo much comission

Try Griffin factors. Cant give you any more details than that!

 

[Maff]

Ignore my PM Grav, these are the people you want to speak to: Cattles Invoice Finance

http://www.cattlesif.co.uk/

 

[GRAV888]

Thanks guys.
Will have a look.

 

[SportsCoupeRich]

i know a fair bit about it. PM if you have any q's. Can also advise several firms that will do it for you and wont charge you my hourly advice rate

 

[imadoofus]

I've used them in the past, so can talk from a practical POV, if needed.

PJ

 

[Satch]

Factors vary from terrible outfits geared up to large volumes with most of their processing outsourced to Bangalore to those offering bespoke solutions for specialist markets. But they have two things in common: all trying to make a profit out of you from what amounts to short term financing backed up by an administration service of variable quality and all will try to tell you how wonderful they are.

Take a look at this:

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073924180

But first of all be clear if you want actually want factoring (where they take over the sales invoicing process) and Invoice Discounting (where you still do it but get the proceeds up front minus charges and discount of course)

 

[GRAV888]

I think Invoice Discounting is the one I need

 

[GRAV888]

i know a fair bit about it. PM if you have any q's. Can also advise several firms that will do it for you and wont charge you my hourly advice rate

Your PM box is overflowing now

 

[andyw]

used two of the better companies in the past - they all have one thing in common - more administration for you!! I've seen more companies go under because of cashflow problems created after they've moved to IF

Be very aware of what you are getting into - and what extra you have to do if you go down this route!

 

[SG CL500]

Just be careful - if you have a rapidly growing business supplying non-contractual goods or services (i.e. one off supplier, no ongoing committment/warranty etc.) they can be good.

However they tend to be expensive, time consuming to administer and always have the ability to raise 'provisions' at will to reduce the drawdowns available. I have seen a number of companies fail when the factoring provider increased their provisions due to a perceived risk, thereby reducing cash just when the business needs it.

If you have sufficient other assets for a traditional bank to lend against then that is usually a better route - but i doubt this is the case if you are already looking at factoring. Any reason why factoring not invoice discounting?

There have been a number of changes recently due to changes in legislation restricting the Banks ability to obtain recovery from debtors under fixed charges (they have had to rely on floating charge security) - this is why the traditional banks have become more expensive of late and why specific providers (eg Bibbys) can be better for you.

There are a lot of providers around - do shop about, the commisions and set up costs are all more negotiable than you'd realise but you will need a good/rehersed story to get the best rates.