We have had an issue recently with a factor turning down a small recruitment company, that we had introduced, due to the prime movers not being home owners and having some previous defaults on their credit history – not CCJs, defaults. It is hard to believe that any factoring company would turn down the chance to fund a small recruitment deal, considered the “bread and butter” within the factoring industry.
This approach of insisting on home ownership, and no adverse credit history is so far away from what how I was taught to look at deals when I was working for a major invoice finance company. The prime security was always the debt, and solid debt would excuse many issues around the personal credit position of the prime movers – recruitment sales, with signed timesheets, is about as solid as debt can be.
Fortunately there are factoring companies that do not take such a risk adverse approach to these types of situation, and they will be sympathetic in such cases – it is just sad to see the issue of home ownership becoming such a stumbling block for some providers within our sector.
There seems to be a constant increase in the number of suppliers of selective invoice finance. Again over the last week or so we have been contacted by two more new providers. Good news, more choice for customers and there is definitely a place for selective facilities. However, the majority of the business that we see is looking for a whole turnover style arrangement, rather than just factoring the odd invoice.
It was also interesting the see an article in Business Insider giving their opinion about losses that they suspect have been accrued by two of the large peer-to-peer lenders (not in the IF sector). Judging by the amount of advertising that these P2P companies undertake, it is hardly surprising that they struggle to generate profits, despite transacting large volumes of business.
The online adverts of one of the new selective IF companies are now following me around the internet after having searched for their site in Google – more impressive but no doubt expensive advertising!
Many people think that invoice finance companies are not able to fund the retail sector, shops etc. However, some of them are. There are specialist retailer finance products that provide finance against your credit/debit card machine takings, based on your history of trade. This can release a cash injection into your business to use for any purpose.
For more details: Shop finance
Very much looking forward to the 1066 Business Awards tonight. Not only is the magazine sponsoring the category of “Best Employer of the Year” but FundInvoice are also finalists for “Best Small Business of the Year”. This is the second year running that we have been finalists, which is an achievement in itself for us.
It should be an interesting evening!
Really pleased to be nominated as Finalists in the 1066 Business Awards again this year. This time we are in the category of Best Small Business 2016.
Looking forward to the awards presentation dinner, later this month, at Bannatyne’s Hotel.
We now have a help area for recruiters on the site.
It has help regarding funding options that are available, credit control support and payroll outsourcing. We have included a number of case studies explaining how we have helped staff agencies in the past, and we will be adding the findings from our survey of local recruiters to that page as we release them.
FundingVoice magazine are proud to be sponsoring one of the 1066 Business Awards this year. We will be sponsoring the award for “Employer of the Year 2016″, which recognises local businesses as outstanding employers.
FundInvoice were lucky enough to be nominated as Finalists, in another category, last year and after attending the awards dinner we were really impressed with how this event recognised achievements within our local community.
The next edition of FundingVoice magazine is out tomorrow.
Our new article about payment delays in the local recruitment sector, shows that more than half of them want to get paid faster. Late payments seem to be creeping into all sectors, even those with historically short payment cycles. Other research that we conducted showed that 87% of existing receivables financing clients thought that greater use of the products would improve the UK’s late payment culture.
Our latest research study focuses on local recruitment businesses in East Sussex and Kent. The survey has now been completed and I am analysing the results. I will start to share them shortly.
We had an interesting meeting with a trade finance company today. They serve the more credit worthy end of the market, but do so without any security whatsoever i.e. no personal guarantees or other security required. This means that it will not affect your other borrowing facilities. In addition to the normal funding of imports, they can also provide a trade facility for transactions within the UK. So you could use it to pay your UK suppliers (one or many suppliers e.g. for transport, rent etc.). The pricing was based on a flat fee per month, so the cost is very simple. More details to follow.