I have received a letter from Simplicity’s solicitors threatening legal action for defamation as they claim that I have made untrue statements about them on my blog.
They claim that concentration limits are common with factoring companies and cite an article by a factoring broker which was designed to paint a worst possible picture in the hope that readers would contact them to find them a suitable factoring company with further examples being provided from another factoring broker’s website which was published for the same reason.
They further claim that facility limits are finite limits as per a paper produced by ABFA without pointing out that they are like credit card limits and subject to renegotiation as and when necessary.
Simplicity are payroll funders providing back office facilities to recruitment companies in conjunction with working capital funding. That they should be trying to compare themselves to standard factoring companies is like trying to compare apples and pears as the products are similar but also different.
What Simplicity fail to mention is that there are several factoring companies that offer a back office facility and that it is these factoring companies offering a similar product to them that in general do not suffer from the disadvantages mentioned by Simplicity.
The solicitors have requested the following:-
In the circumstances, we urgently seek the following remedies from you:
- Removal of the Article from the Website.
- Publication of a suitable apology in a prominent position on the Website for a period of at least 14 days, and thereafter archived indefinitely so that it remains searchable.
- Your undertaking not to repeat the allegations complained of.
I have removed the original post from the blog and I do apologize for not making it more obvious that I was referring to factoring companies offering a recruitment finance package in competition with Simplicity’s own product and not factoring companies in general.