- 22 Jul
Scottish Company Factoring Arranged.
We have just been able to help a car body repairer find an alternative factoring facility, due to the fact that they advised us that their well known factoring company no longer wishes to provide facilities to carbody crash repairers. They are also a Scottish registered company, which not every factoring company can support.
I have mentioned before how different factoring companies will take different approaches to the type of customers that they will deal with. Not everyone funds car body repair centres, and there are other sections of UK business, such as construction, which is also not handled by all providers.
Scottish Company Factoring
To add another level of complication to this deal, they were a Scottish registered company based in Scotland. Which means that specialist Scottish agreements will be required, as they have a different legal system to England and Wales. The need for specialist agreements means that not every invoice finance company is able to handle clients registered In Scotland.
In order to provide a factoring arrangement to a Scottish company, the invoice finance company needs to have agreements that are effective for Scottish law, and a process to deal with their execution. For this reason, not every factor will deal with Scottish registered businesses, however there are some factoring companies that do, and some that even have local offices.
Factoring is a finance product that provides improved cash flow to a business. Firstly, it can release up to 100% of their invoice values, less a small percentage fee for using the service. In addition, the customer benefits from a credit control service, as the factoring company chases in the outstanding invoices from their customers. This can lead to cost savings through not having to employ credit controllers.
We were able to introduce the company to a specialist factoring company, that deal with both car body repair centres, and Scottish registered companies. They have completed the setup of their new replacement facility. Please contact Sean on 03330 113622, if you are struggling to find what you need within the factoring market.
See also: Invoice Finance In Southern Ireland.