- 09 Dec
Funding For Accountants With Poor Sales Ledger Ageing
We have just been able to help a company of accountants find a factoring facility after their existing provider sought to terminate their facility due to the ageing of their sales ledger. So if your factoring company want to terminate your facility, don't panic and get in touch to see how we can help you.
Factoring For Accountants
Accountants are often paid late, it is an issue that seems to dog the sector. This particular accountancy was being funded by one of the larger factoring companies and they had reached the point where the existing provider gave notice of termination.
Sales ledger ageing issues are a problem for factoring companies, as they rely on the sales invoices being paid, in order to repay the prepayments that they provide. Therefore invoices remaining unpaid beyond their due date is a problem that can lead to funding being withdrawn.
Even if there are no risk related problems on your account, factoring companies have been known to change their criteria and terminate clients as they no longer fit their criteria for risk. We have been able to help clients in this situation as well.
Sympathetic Factoring Company
In this case, we were able to introduce these accountants to an alternative, more sympathetic, independent factoring company, who were prepared to work with our client in order to improve the ageing of their sale ledger. As we always say, the approach to risk taken by different providers is not uniform - this allows us to find alternative factors even in cases where a client has been given notice of termination by their existing factor.
Whilst one funder may refuse to finance a certain client (or debtor) another may take them on. Our expertise is in finding providers that can help, and we have a great track record of finding invoice finance for our customers. Over the last year, we have been able to find finance for almost 98% of the clients that we have dealt with.