- 19 Aug
Problems With Home Ownership And Poor Credit History?
We have had an issue recently with a factor turning down a small recruitment company, that we had introduced, due to the prime movers not being home owners and having some previous defaults on their credit history - not CCJs, defaults. It is hard to believe that any factoring company would turn down the chance to fund a small recruitment deal, considered the "bread and butter" within the factoring industry.
This approach of insisting on home ownership, and no adverse credit history is so far away from what how I was taught to look at deals when I was working for a major invoice finance company. The prime security was always the debt, and solid debt would excuse many issues around the personal credit position of the prime movers - recruitment sales, with signed timesheets, is about as solid as debt can be.
Fortunately there are factoring companies that do not take such a risk adverse approach to these types of situation, and they will be sympathetic in such cases - it is just sad to see the issue of home ownership becoming such a stumbling block for some providers within our sector.