- 27 Jul
Last Minute Factoring
It is striking how many prospective clients leave arranging a factoring facility until the very last minute. Another common characteristic is that initially there is a lot of pressure from the client to arrange a factoring facility very quickly, then after us doing so, the client delays proceeding. The reason for this is often that a particular debtor payment has been received and the client feels that their cash flow pressures have eased. However, in nearly every such case the client subsequently comes back a month or two later, and the pressure is on once again to arrange factoring very quickly, often when the next debtor payment hasn't been received. The answer has to be producing a proper cash flow forecast that deals with the worst case scenario of particular payments not being received in a timely fashion. It is always best to arrange a factoring facility in advance of the cash flow crunch so that you have the maximum power to negotiate with different factoring companies.