China Q1 GDP 6. Title text for next article. Ready to get up to speed? Every finance provider will set a limit but most recruitment finance providers will be happy to increase that limit to accommodate growth within your company as their aim is to assist your growth and not hinder it. NetDania expressly disclaims any liability for any lost principal or profits which without limitation may arise directly or indirectly from the use of or reliance on information on our website or the use of our software with broker integration.
This is significantly higher than the industry norm and is potentially highly lucrative for factoring brokers many of whom will now start to introduce new clients to Lloyds Bank Commercial Finance for the their high rewards alone irrespective of whether that particular factoring company is the best fit for the company or not. It seems that once the Administration became public knowledge several vultures factoring brokers obtained talking forex live feed list of their clients from Companies House and tried their hardest to hawk the list around to talking forex live feed few factoring companies talking forex live feed well as trying to get their clients on board so that they could place them elsewhere, earning nice fees in the process.
Not only have Nucleus just come out with a promotion designed to frighten people away from their competitors but I received details of their E Book in an exceedingly patronising email from someone that I had never heard of:- When securing invoice finance for your clients, you need to make sure they understand the additional fees the finance might come with, and the total overall cost. Question is, are you aware of the potential hidden fees?
The E Book talks about the hidden fees in commercial loans but those allegedly hidden fees include take-one fees so they are obviously talking about invoice finance. A very common one-off admin fee to cover the costs associated with arranging the loan. Many companies are caught off-guard by the arrangement fee as it is often not presented upfront in the quote.
Payment is required at the start of the contract. A one-off service charge for recovering payment owed to your company from outstanding customer invoices. When work has been invoiced but payment has not been received, financial assistance in the form of invoice finance can be considered — at a price. The larger the invoices, existing or new, the larger the fee.
With the exception of much larger invoice facilities it is fairly common knowledge that most factoring or invoice discounting clients will pay two charges. A service fee based on the invoices factored and interest on the funds advanced. These fees will be the first thing that most potential clients will ask about and will generally be confirmed by the factoring company in a written quote prior to being included in the Agreement so to say that they are hidden is rather laughable.
This fee is generally considered the most unwarranted of the lot. Simply put, it is the cost your company will pay to a financial institution when funds are paid on the same day the invoice is processed. This service is more often than not presented as part of the deal, without making mention of any penalty fees. Most factoring companies operate on the basis that funds will be available 24 hours after the invoices have been received in order to give them time to carry out their normal checks and due diligence etc but they will occasionally allow their client to draw funds early talking forex live feed this will incur a fee.
Speaking as an ex operations type I am well aware that clients that want their payments prematurely cause a great deal of disruption to the daily work flow and the practice is therefore deliberately discouraged. There are several factoring companies that offer dedicated recruitment finance facilities and as a large proportion of the enquiries received by Factoring Solutions are for recruitment we have relationships with many of the providers and deal actively and frequently with three of them.
Firstly Simplicity claim that:- Many factoring providers will attempt to seduce you with headline rates, but this is likely to be a false economy for several reasons. In traditional factoring there will normally be two charges as Simplicity have stated but the factoring companies that offer recruitment finance facilities will have just the one charge and frequently that single charge will be lower than that available from Simplicity.
Secondly, the longer it takes your client to pay the more expensive your factoring facility becomes, with interest continually accrued over time Again this is incorrect as with recruitment finance facilities which is what the title of their article was about there is a single charge levied on sales and slow payers will not result in higher costs. Thirdly, perhaps most important of all, factoring by default imposes a concentration limit — the maximum amount the provider will cover for a single client.
However, what happens once you hit that cap? All of which could see the recruitment business you have worked so hard to build and grow fall by the wayside within a matter of days. Can you really afford to take that risk? Every finance provider will set a limit but most recruitment finance providers will be happy to increase that limit to accommodate growth within your company as their aim is to assist your growth and not hinder it. As most regular readers will know I consider the various annual factoring awards to be little more than a joke for a variety of reasons but one Factoring Blog reader very kindly sent me a link to what is probably the biggest farce to date as it seems that a factoring broker called Fund Invoice has been shortlisted for Small Business of the Year in the Business Awards of Eligibility for this prestigious award is in their own words:- This award is open to all businesses with less than 10 employees that can demonstrate exceptional performance, growth and market leadership.
Of the two major players I far prefer the Platform Black operation to that of Market Invoice as the company is run by experienced factoring professionals who are available to speak to if there are any queries or questions whereas as far as I can gather Market Invoice is run by a sophisticated piece of software and the customer service is all but non existent judging by the complaints received from dissatisfied users who have tried it but prefer the offerings of companies with people that they can talk to.
The fact that they are claiming to have only suffered one bad debt in the last 15 months is testament to the benefit of having the company run by factoring professionals even if they seem to have the PR skills of a Chicago rapper. To a company that relies almost exclusively on introducer lead new business that comment made about as much sense as suggesting that they get rid of all the staff to save on wage costs.
IGF Invoice Finance is an interesting company with a chequered history talking forex live feed many years ago they had an excellent reputation for their service levels which was ruined at a stroke when they introduced a new computer system without testing it properly and without running it in parallel with their existing system as it failed to work as expected resulting in their clients scrambling to find alternative factoring arrangements. In the current economic climate factoring companies are finding new clients harder to come by so they are supposedly making a bigger effort than ever before to hang on to existing clients although too many take a short sighted view to earning profits which works against long term profitability.
The company started factoring a couple of years ago as a new start and paid an talking forex live feed factoring commission for the small turnover and risk. What made this interesting was that the factoring company involved was the very same one that was trying to take the moral high ground on the first case. Speaking as someone with a predominantly operation background I find this sort of greed to be very short sighted as whilst both factoring companies have earned a high income in the last twelve months if they had been less greedy they would have continued to earn a smaller income for potentially many more years.
If any factoring company thinks that will get away with excessive rates for long they are mistaken as there are a number of brokers out talking forex live feed who spend their day contacting factoring company clients to find any excuse to move them on and thus earn themselves a commission. This particular funder registered a charge to RBS Invoice Finance six years ago but six months later that charge was satisfied and a further charge granted to Bank of Scotland.
Two and half years later that charge was satisfied and a further charge registered to Lloyds TSB Commercial Finance but that only lasted nine months until the business transferred to Leumi ABL where it remained until transferring yet again to Close Brothers eighteen months ago. A couple of hours later I had another call from someone looking for a factoring company who wanted to know what my charges were. I wished him good luck in sorting the wheat from the chaff and finding himself a factoring company that performed as well as they claimed and ended another unproductive call.
I held up posting this until such time as it was unlikely that anyone from Ultimate would read it prior to them all meeting up and cross examining their guests to save him embarrassment. She said that they had been acting for a factoring company and had been so successful in generating business for them that the factoring company could no longer cope which is why they had targeted Factoring Solutions as a replacement to act for.
If you are interested in factoring or invoice discounting and only want to deal with one of the few factoring companies that deliver what they promise please contact Ian Johnston of Factoring Solutions one of the few truly independent specialist factoring and invoice discounting brokers around Tel subscribe and receive notifications of new posts by email. Invoice trading online, a disaster waiting to happen? Long may this continue. The first was a recruitment company who had a funding and back office facility with a back office funding company that I had never heard of but who had been causing them problems for a while with their poor service which was why they were now looking to change.
If you are interested in factoring or invoice discounting and only want to deal with one of the few factoring companies that deliver what they promise please contact Ian Johnston of Factoring Solutions one of the few truly independent specialist factoring and invoice discounting brokers around Tel
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