One of my largest clients will be going into Administration this afternoon. The company has had problems for a while and the factoring company have been desperate to help but the company’s directors have been uncommunicative. It now transpires that there is a newco lurking in the background and the factors have discovered that many of the invoices that they have funded have also been issued on newco too.
It was a tricky facility at the best of times due to the nature of the product and the factoring company feel that there is now a huge possibility that they won’t recover their investment. It’s a shame that The Telegraph aren’t interested in stories like this as client fraud is far more prevalent than many people realise but unfortunately it isn’t sensational enough.