- 20 Aug
Is It Time for a Code of Practice for Invoice Finance Companies?
A recent issue with a client of a bank owned factoring company led me to investigate the existence of any code of practice, either compulsory or voluntary, that would govern the actions of the invoice finance company and potentially assist the client if it was not being followed.
However, there seems to be no published code of conduct available against which an invoice finance provider's actions can be measured.
The business banking code:
. . . does not include invoice finance, so has no bearing, and there is no published code of conduct from the ABFA which is the industry body for the invoice finance industry, although apparently there is a code of conduct that is only available to members.
Conversely invoice finance brokers, that are members of NACFB, are bound by a published code of conduct - it would seem time for the invoice finance companies to follow suit and publish a code of conduct which could only be in the best interests of their clients.