Fowles Spurling Cannon - can we save you money, or help you generate extra income?

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The idea came when we received a circular from Calverton Factors Ltd (previously Hampshire Trust Factors).  We realised that as well as the major players in this market, there are a number of other businesses offering factoring.

This is not a recommendation of factoring or an individual factor.  We have not researched the market.

A useful site which lists a number of factoring providers is Business Credit Management UK.

A further variation which again we have not researched is Transactional Trade Finance.

Not all factors are the same.  Not all businesses considering factoring will be looking for the same benefits.  The facilities available in the market include -

• Funding for start up businesses
• Turnover needs to build to at least £100,000 to be efficient
• Turnover can be concentrated up to 50% in one customer, subject to credit checks
• Credit insurance can be obtained for selected or even a single customer
• Standard recourse periods of 3 months can be extended to 12 or 18 months for certain trades
• It is possible to find factors who will deal with individual customers in different ways
• Factors can be flexible, but will always look for good controls within a business (such as signed orders  which will avoid disputes) in setting rates
• You may not be charged for credit checks, and factors know many of the bad payers from their own records
• Factors will make your credit control calls for you using experienced staff
• Chasing debts is seldom effective use of a business owners time

Contact us to discuss whether factoring could benefit your business.

Reminder - disclaimer applies. Please feedback your comments.  This page was last modified 9 October 2002.