The previous blog mentioned a business that required invoice financing for contractual debt. Where there is a certain amount of contractual debt the business is deemed to be more risky and therefore the finance company will require a more control over the facility. Invoice discounting is risk because the finance company has no control over the invoicing and factoring is not always preferable for many business because they would prefer a confidential facility. Confidential factoring is a half way house. A dedicated credit controller chases your customers in you name with a dedicated telephone number. Whilst it is a compromise it can be a costly funding arrangement however it does give some businesses an option which they would oif otherwise had.
Tags: confidentail factoring
