insolvency practitioners

Factoring and insolvency practitioners

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Chatting to a another friend from a different independent factoring company yesterday and he told me about the prospective client who had agreed terms etc but a closer look showed him to have the sort of financial problems that would be better served by closing the company down and restarting.

The prospect chose their own insolvency practitioner who promptly got another factoring company involved on the basis that he wouldn’t receive any commission from a deal that he hadn’t introduced.

Unethical?   Just a bit

 

ABFA statistics

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The ABFA have recently published the factoring and invoice discounting statistics covering the first quarter of 2009. Whilst this shows a small decline in almost every area from numbers of clients to advances made it should come as no surprise in the present economic climate.

The number of clients at the end of March 2009 was down to 46,999 from 48,536 at the end of the previous quarter and whilst 2,260 new companies were welcomed to the world of factoring and invoice discounting 3,027 disappeared in the same period.  Assuming that the majority of the 3,027 went bust in one way or another it’s not surprising that insolvency practitioners are the factoring companies new best friends.

I wonder if Eric Cantona was thinking of the relationship between insolvency practitioners and factoring companies when he came out with his now legendary quote ” When seagulls follow the trawler it is because they think sardines will be thrown into the sea”