- 05 Sep
Breached Your Factoring Facility - Don't Panic!
A "breach" of your factoring facility means that you have contravened one or more of the rules set out in you factoring agreement. This can result in your factor suspending further funding or even giving you notice of termination. "Breaches" can include: - Raising "fresh air invoices" that don't reflect and underlying sale. - Paying off sales invoices with your own cash. - Banking debtor payments. - Pre-invoicing, raising invoices before goods are delivered. It may still be possible to find you an alternative factoring company in these circumstances. Your particular situation will need to be considered but there are factoring companies that will be sympathetic in appropriate circumstances.