Alternatives to Invoice Factoring

Posted on 2nd Jul 2009 by Alan in Invoice Factoring | Comments Off

Invoice factoring is ever more to the forefront of bank managers’ minds when they review clients borrowing requirements. It generally provides greater income to the bank so managers who are under ever more pressure to increase income often recommend Invoice Factoring when it is not appropriate. So Beware.

The disadvantages of invoice factoring

Invoice Factoring can often solve immediate cash flow problems. But you have effectively sold your debts and have little or no control over the actions of the factoring company. Invoice factoring is a multiple of the cost of an overdraft. Many businesses see invoice factoring as a habit - something they would desperately love to be able to do without. Not exactly the most positive endorsement. Read the rest of this entry »

Factoring - Bank pressure and lost clients

Posted on 18th Jun 2009 by Alan in Invoice Factoring | Comments Off

I attend at least 2 networking events a week and in the general conversations with business owners I have found a disturbing number of businesses experiencing a very uncompromising attitude with their bank managers when it comes to the annual account and overdraft review.

These funding reviews often have managers implying or even threatening to withdraw the overdraft and pushing the business to factor their debts.

But why? Read the rest of this entry »