A bank collecting money for a business ? why

[lexi 1]

Used a company recently and been waiting for there invoice for services used and had a letter from there bank saying we need to pay them . Why ? I suspect that the company maybe in some money troubles and the bank has taken over

[Simpo Two]

Invoice factoring?

[Jockman]

Perhaps they are using the bank as a factoring company?

Very common and nowt to be worried about.

[lexi 1]

Simpo Two said:

Invoice factoring?

Not heard that before what is it ?

[Simpo Two]

lexi 1 said:

Not heard that before what is it ?

Companies who struggle with cashflow/can't get bills paid on time sometimes pay an agent or 'factor' to do it for them. Of course the factor takes a percentage so IMHO it's a downward spiral... but it happens.

I think you should have had notification from the company or the bank in advance, so make sure it's genuine.