Factoring & Invoice Discounting
Discussion
We have been factoring our debtor book with credit control included for around 4 years, most of our customers require credit, B2B etc, and yes we obtain payment up front where possible but its not with most.
Now the business is doing much better we would like to move to "Confidential Invoice Discounting". In an ideal situation we would buy the entire debtor book back and credit control ourselves but we don't have enough cash reserves to do so at the moment. One alternative could be a loan but we don't know who would give us one, this is not a route our bank wants to go, they have really pissed me off and seem unwilling to help with anything sensible.
My question is does anyone have any recommendations in the this area for who is best to use, specifically for CID or ideally a loan.
Thanks.
Now the business is doing much better we would like to move to "Confidential Invoice Discounting". In an ideal situation we would buy the entire debtor book back and credit control ourselves but we don't have enough cash reserves to do so at the moment. One alternative could be a loan but we don't know who would give us one, this is not a route our bank wants to go, they have really pissed me off and seem unwilling to help with anything sensible.
My question is does anyone have any recommendations in the this area for who is best to use, specifically for CID or ideally a loan.
Thanks.
clarkey said:
My only experience with invoice discounting was that it was expensive and had pretty unpleasant (and expensive) audit requirements. This was 5 or 6 years ago so things may have changed. The provider was Clydesdale.
Its still the same and we hate it, it would be cheaper for me to pay over the odds for a loan to get rid!close were always very competitive. but haven't bothered checking for some time.
hsbc - I'm with. factored + insured, b2b, and will stick with. you can actually talk to/with them.
I used to think that factoring showed a company as being somewhat weak. i now take the view that
if a company is factoring, at least it's being watched by a bank. if I binned it now, the money
saved would be fairly substantial, until I add in separate insurance + employing somebody else
to run credit control. as it is I have very little work other than sending out invoices.
I won't be changing soon.
hsbc - I'm with. factored + insured, b2b, and will stick with. you can actually talk to/with them.
I used to think that factoring showed a company as being somewhat weak. i now take the view that
if a company is factoring, at least it's being watched by a bank. if I binned it now, the money
saved would be fairly substantial, until I add in separate insurance + employing somebody else
to run credit control. as it is I have very little work other than sending out invoices.
I won't be changing soon.
BGARK said:
clarkey said:
My only experience with invoice discounting was that it was expensive and had pretty unpleasant (and expensive) audit requirements. This was 5 or 6 years ago so things may have changed. The provider was Clydesdale.
Its still the same and we hate it, it would be cheaper for me to pay over the odds for a loan to get rid!BGARK said:
0.95%
80% drawdown
+ Other charges
from what I've gathered over the years, some factoring houses80% drawdown
+ Other charges
charge on top of the service charge for all sorts of admin costs.
change of customer limit would be an example. some withdraw funding
availability if customer pays too late.
in my mind this would be the time for me to switch away from factors.
the reason I've stayed where I am is that none of these extras apply, so
my life is simple. initial arrangement fee + service charge + interest on borrowed money.
all online - doesn't leave me a lot to do, except to monitor trading levels and
request limit increases. (for insurance purposes).
pm me if you want more detail.
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