Increase in the number of factoring brokers expected in 2009

With factoring companies like Bank of Scotland having pulled up the shutters to new business and laid off their sales staff and others like GE Commercial Finance and GMAC just marking time the employment market is being inundated with factoring salesmen looking for jobs. Those few employment agencies that specialise in recruiting for factoring companies have more CVs on their files than ever before but unfortunately there aren’t any vacancies to fill.

The salesmen with proven track records will probably end up with one of the few vacancies that will be occuring in the near future whilst the rest will either leave the industry or try their hand at broking. I fully expect to see an upsurge in inexperienced factoring brokers this year and would suggest that anyone looking at factoring or invoice discounting should enquire a little more deeply than normal into the credentials of their chosen broker and perhaps even make sure that they are members of the Independent Factoring Brokers Association

 

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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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Bank of Scotland screws it’s factoring clients

We were recently approached by a company that had been factoring it’s invoices with Bank of Scotland’s factoring division for over two years but now wanted to change.

Having arranged an introduction to a replacement factor the company tried to give notice to be told that they were on a rolling 12 month contract with three month’s notice to be given on the anniversary date of the Agreement and they could either stay for another nine months or else pay a hefty termination fee.

In an age where most factoring companies are reigning in their restrictive practises it is a shame that Bank of Scotland is still trying to screw as much money out of their customers as they can.

Caveat Emptor

Ian

Factoring Solutions

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