Quote:
Originally Posted by James Smith
Again don’t know what your fees are but the client who’s books I am currently completing was charged 4.8% of turnover from a high street bank. T/o was only £150k so although I think the “headline” rate quoted was 3.5% but it racks up with all the fixed charges.
|
I don't charge anything as I receive a fee from the lender if an introduction is successful. If you want to give me some more details of your client (in private of course) I will happily see if I can find a better deal for him
Quote:
|
Yes factors can be very useful people to know, especially when banks wont lend and a company is looking at an abyss, but to finance growth? Many things to do before you get to factoring I am afraid. It also spooks customers as they think you are about to go bust when they find themselves paying the factor.
|
Banks are lending less and less on overdraft nowadays pushing suitable businesses in the direction of their own factoring subsidiaries where the security is better and the returns higher and in many cases it's factoring or nothing.
I agree that every company should have their house in order before approaching a factoring company and admin systems and credit control comes first but I have to disagree with you about customers being spooked by their supplier using a factor as it's mainstream lending nowadays with close on 50,000 UK companies using factoring and invoice discounting