Rate swap miss-selling and invoice finance

It seems that many companies who have been miss-sold rate swaps are loathe to take action as they are concerned that their bankers might not take kindly to being sued by their own customer and could respond by calling in overdrafts etc.

One or two companies have looked at invoice finance as a financial tool specifically to help them move out of the clutches of their bankers in order to allow them to institute proceedings against them without fear of any comeback with one company that we know receiving damages of £390,000 this week from their ex bankers having first of all utilized invoice finance to move themselves to safety.

Factoring Solutions has teamed up with one of the major factoring companies plus a consortium of finance companies and banks that are willing and able to offer banking facilities, asset based lending and commercial mortgages to any company that wishes to safeguard their financial position before entering into “discussions” with their current bankers about compensation

 

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One Response to Rate swap miss-selling and invoice finance

  1. LimeDave says:

    Topical article. There is a real concern with clients over how their bank will look at them, and make a hefty claim against them. Calling in facilities has to be very unlikely, to call in even an ‘On Demand’ facility still takes a sound rationale.

    The real risk is in damage to relationship, if a hefty claim is necessary then getting your house in order and establishing an alternative banking relationship would be prudent.

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