Factoring and you

There are around 50 companies in the UK offering factoring and invoice discounting services, and that number will rise significantly in the future, so it pays to shop around.

We at KAFL have a vast range of experience dealing with these companies and we can help you choose the right factor who understands your business and your objectives.

Around 30,000 companies now using factoring firms to help them collect debtor invoices in the UK alone.

The type of firm you pick is very important - make sure they meet your needs. Choosing the wrong factor can be a costly mistake!!

There used to be a stigma attached to using a factor but these days it tends to be viewed by most as a viable cash management technique.

If your firm does a lot of businesses with a particular region abroad, make sure your factoring company is up to the task overseas.

Some specialise in working in different parts of the world - they may have an affiliate in America , for example.

Others may particularly successful in working particular markets or trade sectors.

When the financial offers between factors are similar, it is worth checking out operational differences to see which company works best for you.

It is also worth asking around to find out the experiences of people who already use a factoring service.

Perhaps you are a client of a company using a Factor - how do they treat you?

Would you be happy if they treated your customers the same?

Good factoring companies will normally seek to work efficiently and politely with your clients to ensure that your firm's goodwill remains intact where possible.

Many factoring companies are happy for you to continue liasing with your customers to ensure repeat business, and in an increasingly competitive world, this continued personal touch could give you a leading edge.