Factoring companies like to claim that they offer a first class personal service but far too often their credit control consists of sending out computer generated letters and little else. Most people are aware that standard credit control letters go straight into the bin and human nature being what it is, many of the customers will prioritise payment to those suppliers who chase them for money and put those that don’t to the bottom of the pile.
In these circumstances it isn’t unusual for a company whose customers have historically paid in 60 days to gradually find them taking longer to pay once they start factoring with the average payment period slipping to 70 days or more.
The major overhead of factoring companies is staff and many try to increase their own profitability by cutting back on administrative staff. Invariably this results in the remaining accounting and credit control staff having to handle excessive workloads which can only ever be to the detriment of the client as their client handling team won’t have the resources to give them the service levels that they expect and are paying for.
It is noticeable that we are approached more frequently by clients of certain factoring companies than others.
If you are not happy with the service levels provided by your factoring company please do not hesitate to contact Factoring Solutions on 01827 707680 completely without obligation or charge as we know which factors perform and refuse to deal with the rest.