Invoice discounting / Factoring
Discussion
Digga said:
StevieBee said:
A printing company that was once part of the group of companies in which mine sat used to print and publish charity Christmas cards. It was very big business but all the costs were incurred between Feb and August with invoices not being paid until Oct - Feb (allowing the charities to keep cash-flow positive). The choice was to work on either an overdraft or factoring and factoring was the cheaper option, simple as that.
It worked very well for many years until in 2010, the bank decided to withdraw the facility for no viable reason and with little notice. With overdraft facilities being hugely limited, the company went under.
Excuse my French but what a bunch of utter, nihilistic It worked very well for many years until in 2010, the bank decided to withdraw the facility for no viable reason and with little notice. With overdraft facilities being hugely limited, the company went under.
s - the bank that is. Care to name them? RBS per chance?I'm afraid that, over the course of the 2008-11 crisis, I heard no end of tales like this. It will take decades for the SME economy to recover IMHO, not least because generations now coming into business-owning/starting age do not have the benefit of the same equity and MEW in their personal mortgages with which to begin.
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