- 02 Feb
Top 5 Factoring Companies
I was reading in a factoring blog recently that someone had apparently posted the question "which are the top 5 factoring companies ?" and the blogger proceeded to state various web sites that would be able to give the prospect a list of the top 5 factoring companies.
The issue is that you cannot say that any 5 particular factoring companies are "top" in every case. Which factoring companies are "top" of any list depends entirely on the nature of the businesses that is seeking the factoring facility and the criteria by which they will define the "top".
If they are looking for a great deal of support with credit control one might select certain factors for the list and not others, however, if the issue is can those factors assist businesses in, for example, the construction industry, the list might be considerably shorter than 5!
The point is that anyone thinking of using factoring needs to make sure that their shortlist of factors contains only those that are going to be most: suited to their industry sector; method of operation; pricing expectations and able to handle the degree of risk that is involved with their particular situation. Not to mention factoring in the client's opinions about the pedigree and backing of the factor that they are prepared to use e.g. are they bank owned or independent, established or new to the market.
All of the above mean that a broker would prepare for each client their own tailored list, suited to their own circumstances, of the Top 5 Factoring Companies.