Factoring Blog News, views and gossip from the world of factoring and invoice discounting

A couple of months ago there was a rather “interesting” factoring case doing the rounds being a restart of a printing company that had gone bust defrauding Lloyds TSB in the process with loads of fresh air invoicing and as one would expect it was declined by all of the established factoring companies.

Much to my surprise I heard that this challenge had been taken up three weeks ago by one of the new kids on the block with a funding limit of £250,000

I have since heard that the factoring company are not happy with this partnership and are trying to unload it already giving the reason that they can’t offer more than £250,000 and the company really needs more than that.

The printing company obviously think that the more brokers they put it to increases the likelihood of finding a mug factor to take them on as there are currently at least two of the highest profile factoring brokers touting this around using the line that “this is a good little deal”

Neither broker is incompetent so they must be aware that all is not well with this particular deal and are hoping that the factoring companies that they are asking to look at this are too dumb to notice but that probably won’t be the case and the brokers will end up with their reputations tarnished whilst the new kids on the block will be keeping their fingers tightly crossed that they aren’t going to go the way of their predecessors already

Posted under Factoring companies

Bank Santander have entered the UK factoring market not with a bang but with a wimper. The Spanish banking giant has been sniffing around the many factoring companies for sale for some time and were rumoured to be the frontrunners to take over Cattles Invoice Finance until getting cold feet and have instead plumped for the little known Liquidity Ltd a small factoring outfit based in Birmingham.

I have always been very dubious of recommending any of my clients to Liquidity as it is run by the same person that used to be the Chief Executive of Euro Sales Finance until it was rescued by Royal Bank of Scotland in 2001. Prior to being taken over by the bank Euro Sales topped the league tables of independent factoring companies appointing Receivers to their clients.

In 1999 and 200 Euro Sales Finance accounted for one in five of all Receiverships appointed by independent factoring companies which was a horrifying statistic and one that has ensured that I never deal with any factoring company that has any of their old directors in a management position.

Posted under Factoring