invoice discounting companies should be selected with care

invoice discounting brochures almost always say the same thing irrespective of which discounter is trying to sell you their services as they all claim to offer a fast, flexible solution with unrivalled personal service.

On reflection, how likely is that to be true? Do the clearing banks offer either fast, flexible or personal services to the SME sector? If not, how likely is it that their discounting and factoring subsidiary would have a different culture.

Invoice Discounting UK is a specialist broker with perhaps more years of discounting & factoring experience than any other.  Most of our industry experience has been gained in senior operational roles within various factoring and invoice discounting companies so we are well aware of the minor as well as major operational foibles that can and have caused problems for the unwary.

We know which discounters are unable to make any decisions quickly, where any variations have to be approved by a variety of committees, which ones have a raft of extra fees that will come into play once the ink on the agreement is dry and which ones’ despite claiming to operate a “personal service” are actually governed by a strict rule book.

Our services are free as we receive an introductory commission directly from the invoice discounting company and as almost all pay at about the same rate we have no vested financial interest in choosing one over the other.

Whilst many of the problems with poor service are primarily associated with factoring facilities there are as many problem areas with invoice discounting waiting to trap the unwary as the page relating to the way that discounters try and reduce the overall funding levels through unapproved debts and concentration limits will indicate. It will only take a couple of minutes to read the next couple of pages and hopefully you will find the information contained there worthwhile.

Please see next page for details on the hidden costs of invoice discounting