- 19 Oct
Problems With Your Invoice Finance Company
If you need help because you are having problems with your invoice finance company, first check if they are member of the ABFA (Asset Based Finance Association). Whilst the ABFA is not a regulatory body, the invoice finance companies, that are members, are bound by a code of conduct that is backed up by an independent Ombudsman complaints process.
You can read a copy of both the code of conduct, and the detailed guidance notes here: http://www.abfa.org.uk/standards/TheCode.asp
Whilst 98% of IF users would recommend their factoring and invoice discounting services, you do occasionally come across cases where a client is not happy. I recently heard of an existing client of a factor who were allegedly being charged significantly more than they had expected. Hence they were seeking an alternative service from another provider. The new provider had suggested that they check if the current provider is a member of the ABFA. If this is the case, they should refer to them ot the code of practice, in particular the requirement for transparency regarding charges and fees.
If a member of the ABFA has not abided by the code of conduct, this could be cause for a complaint to be escalated to the Ombudsman for indpendent resolution.
There are many factoring and invoice discounting companies that operate in the UK, we can help you find the provider that can best meet your requirements. However if you want to leave factoring or invoice discounting altogether, please read this article: Steps to leave IF.
Other relevant information:
- Difference between factoring companies - an article describing the 5 main differences between factoring companies.
- ABFA complaints procedure - our original post about the complaints procedure.
- Number of ABFA complaints - details of the total number of complaints that were received by the ABFA during the first year or launching the new process.