Are you using an expensive factoring facility but feel that you are doing all the work yourself? This is the most common complaint regarding factoring finance. The factoring company is supposed to handle all the collections and credit control. However if you choose the wrong factoring company you end up having to do all the hard work which makes the facility doubly expensive. The good news is a CHOCS facility ” Customer Handles Own Collections” provides a half way house. Read on peops.
A CHOCS facility provides an alternative to a business that isnt eligible for invoice discounting however would not rather go to the expense of paying for credit control with a full factoring facility. CHOCS funding is very appropriate for business that already have their own in house credit control. As with factoring your customers will be ware that you are assigning your invoices to the finance company however you will be given sole responsibility for the collections element.
Obtaining confidential invoice discounting is not as easy as it used to be this factoring facility may be the perfect solution. High street banks will often try and switch a business from confidential invoice discounting to full factoring during and following a period of difficult trading. This is because a business in such circumstances is perceived a higher risk and as such full factoring gives the banks greater control and also a greater return for the increased risk.
A CHOCS facility can be provided by a number of independent factoring companies and as such can provide an improved service and affordability.
