The half percent reduction in bank lending rates last week may not be greeted quite so warmly by some factoring clients as they could find that their agreement stipulates that base will be a minimum of 5% as is the case with one of the largest of the independent factoring companies.
2 thoughts on “Reduction in base rate may not benefit all factoring clients”
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It’s not so much the change in the base rate that appears to be having the most impact, it’s the across-the-board price increases on service charges and arrangement fees for new deals that the industry seems to be applying – “Supply and demand” rules I guess.
It does appear to be the same High Street bank owned factoring company that lead the downward spiral of rates that is first in the queue to raise them again.