[Closed] OT: Invoice factoring/discounting

Yo.

I will tell you if you sell me your Yeti for £100....

(it's generally a good way of ensuring a decent cashflow, by decent i mean predictable, but bear in mind the other party may not pay anyway and then you won't be able to draw down from the factors)

Pop in tomorrow and i can explain.

tomorrow is a bit busy but I will see what I can do. might be wednesday.

you aren't supposed to be buying bike/parts, remember? 😀

It cost me a small fortune, and money was recoursed at 90 days anyway.
Plus the bank really pee'd off my customers with calls from their call centres, which they said they never used.
We asked/told them not to ever contact a certain customer who always paid on time. They did, and he wrote to them in black felt pen - and I quote '**** off I owe you nothing'

We just have to accept 90/120 days is normal in our trade, and I up the margins to cover it.

With a payment profile like that ie 90-120 days do not touch factoring or invoice discounting it won't work for you.

Invoice factoring is a bad idea for people who don't do effective credit control. As Oldgit said anything other 3 months and they will take the money back from debts so your bad debts still don't get paid but instead you get charged by the bank for them not paying.
There are some very good credit controllers out there if you can't do it yourself. Employ one on a part time or even self employed basis as it will be cheaper than using factoring.
As an accountant we tell people this all the time but the temptation of quick cash from the bank they normally go that route anyway and regret it afterwards.

I should say that 90/120 days is usually what is agreed these days, though I only get 30 days from my suppliers. Is that your problem?