Factoring companies all tend to claim that they offer a fast, flexible personal service but unfortunately in all too many cases that just isn’t true and the service offered is second rate, poorly delivered and extremely inflexible.
Credit control too often consists of just mailing out computer generated letters and nothing else so little surprise that the customers start to take longer to pay. A factoring company’s major overhead is staff and many try and control their own overheads by increasing the workload on each account manager so that they end up having too many clients to look after effectively. Apart from the poor quality of service that will be the result another side effect is that the factors’ staff are demotivated and end up leaving which gives rise to a common complaint that the client has no continuity with their account manager.
Other signs of poor account management include receipts from customers that are unallocated and end up in a suspence account with the factoring company continuing to chase for payment on an account that has already been paid.
In addition to the poor service the factoring companies operate a raft of schemes and excuses to ensure that the funding is kept as low as possible and we have made a note of some of the factoring company funding issues for you to beware of.
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