October must be the month for awkward customers

We were approached by a company earlier this month looking for a combination of trade finance and invoice discounting as they had just received a substantial contract that they would have difficulty in funding.

Whilst I’m sure we would have no problem placing the business in principle this chap refused to divulge the name of his company, the name of the customer or any other details whatsoever and the only meeting that he would agree to was in a motorway services station.

Number two was involved in the construction industry, turning over a couple of million with only a few major customers. When asked if she could let the factoring company have sight of the contract the toys flew right out of the pram. I didn’t realise that there would be so much work involved said she continuing that she wasn’t sure that she wanted to bother any more.

What makes it worse is that there are still ten more days to go in October

Fairfax Gerrard in Administration

Administrators were appointed to Fairfax Gerrard Holdings Ltd, Fairfax Gerrard International Ltd and Fairfax Gerrard Traders Ltd on 19th November.

This will undoubtedly affect all of their clients who may not be able to survive the sudden cessation of their trade finance facilities and may have difficulty in replacing them quickly due to the quirky nature of some of the finance company’s offerings.

Ian

Trade Finance UK

Fairfax Gerrard problems

It would seem that Fairfax Gerrard’s financial problems are likely to be terminal as the company have had a Winding Up petition served upon them. This is unfortunate to say the least for their trade finance clients as they will have had the rug pulled out from under them without any notice and many may find it a struggle to survive themselves.

I see from Companies house that Fairfax Gerrard Group Ltd and Fairfax Gerrard Trade Finance Ltd were formed in July this year so it looks like there are plans to set up again.

Ian

http://www.tradefinance-uk.co.uk

Close Invoice Finance shows up Bank of Scotland

By the purest of co-incidence we have been approached by a company who had a factoring facility with Close plus a trade finance facility with Fairfax Gerrard. It would seem that the trade finance company have cash flow problems of their own and their inability to continue to provide trade finance has put a lot of financial pressure on the company. Judging by other telephone calls that we have received this company is not the only one suffering due to their relationship with Fairfax.

We put it to the company that whilst we could possibly source a replacement trade finance facility they would also want the factoring too as that would be their security and were told that this had already been discussed with Close who would reluctantly release the company from it’s factoring facility as it would be in the best interests of the company.

It’s good to see that in this day and age there are still companies that will “do the right thing” so plaudits to Close Invoice Finance who have shown up Bank of Scotland for the greedy concern that they are.

Ian

http://www.tradefinance-uk.co.uk

 

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Davenham Group Problems

Less than a year after Davenham rejected an £84m takeover bid at £3.25 per share an announcement that record bad debts will wipe out any profits has seen the share price tumble to just 8.25p

The company has taken measures to react to changing circumstances by making a large number of staff redundant whilst employing more people in it’s arrears department but there are still concerns that the problems that originate in the property division might impact on the factoring and trade finance divisions.

Davenhams have some niche products for financing the SME sector including a stock finance facility that is quite innovative and we would hate to see that plunging property values will affect the company’s ability to continue increasing it’s presence in the factoring arena

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