In theory obtaining a factoring facility for a new start business should be a relatively easy process. However we would advise that you consider a specialist factoring company that isn’t necessarily attached to a high street bank. Most finance companies will offer a facility providing that your debtors are of a decent nature. If you are starting off we only one or two customers then it is important that you obtain credit insurance. If your one and only customer were to go bust this would have disastrous consequences for your business and will potentially leave you personally exposed as you will have been asked to provide personal guarantees.
Tags: Factoring, factoring company
