Factoring Partners – Weekly Blog, Friday 4th March 2016
Factoring Partners is not a volume introducer of business to the invoice finance world. A quick hunt around google will confirm we have only a limited presence on the web so with this source bringing very little it’s surprising in a way to have a week like this one where enquiries are at a level not seen for some time.
I wish I knew why this was the case, presumably the product of groundwork done some time ago or pure luck – or somewhere between the two and its also inappropriate to welcome this increase as indicative of an overall improvement in likely invoice finance usage.
A couple of recruitment businesses, an importer & distributor of menswear and an engineering business have all been assisted this week. Sadly only one of the businesses is completely new to invoice finance (being given its marching orders by its bank) the others being existing users.
Many businesses will view their funders as providers of a commodity (whereas in times gone by the facility was often relationship driven) so are not afraid to move, sometimes frequently, from one funder to another. There can be a significant material gain in switching either through an increased funding line or a superior service so businesses should not be put off switching but the motivation needs to be a plausible one.
This week, within the invoice finance market, comes news of yet another new entrant to the market, to be started by highly experienced individuals. Whether the market has room for more entrants is open to doubt but with the banks continuing to fail to serve their small business customers I guess the need for an independent sector remains strong.
Away from the excitement of the invoice finance world, news is dominated by the great EU debate and the unedifying spectacle of politicians grabbing their little bit of attention. I’m not sure why we should take any notice of politicians one way or another. They have consistently failed to negotiate a position with which we are comfortable within Europe and I suspect would be similarly hopeless at trying to navigate an exit.