I am sure that clients of Barclays factoring division were surprised to hear a couple of weeks ago that the bank had sold their factoring portfolio to the little known finance company 4Syte
It seems that quite a few of these clients are unhappy with the arrangements as they didn’t wish to be palmed off onto a factoring company that they had never heard of so have started contacting other better known factoring companies in an effort to be moved on.
I must admit that I knew very little about 4Syte so a little research turned up the fact that it’s a fairly new company headed up by Nick Sellars which was a name that I did recognise from way back as he was Managing Director of the late unlamented Aston Rothbury Factors which went bust just over ten years ago.
He then set up Platinum Funding which later morphed into Pulse Cashflow which as readers of Factoring Blog will know is my least favourite factoring company.
Instead of trading as a single company 4Syte seems to consist of a group with a separate company formed for each type of finance that they undertake with at least nine different 4Syte companies in the group with Balder Capital Ltd being shown as a person with significant control.
Barclays have always had an uneasy relationship with factoring as they were the last of the High Street banks to set up an invoice finance division and even that was very slow to get going and sizewise never got close to the other banks in terms of vanilla factoring clients and turnover and even their operations were unusual as they used a third party for much if not all of their new client Onboarding.
It seems that 2021 might see a considerable amount more of changes in the industry as rumours abound that factoring clients of RBIF have been given six months notice too so there will be a mad scramble amongst factoring companies and brokers to hoover up their clients too.
Factoring Solutions do not operate as ambulance chasers but any factoring client that is unhappy with their existing arrangements should feel free to contact us on 01827 707680 for an informal chat completely free of charge