Factoring Partners Blog, 8th April 2016
Whilst this blog goes under the title of an invoice factoring blog most of this week, it seems, has been spent on a property development issue which has made me realise why I prefer the far shorter lead times associated with invoice finance.
One invoice finance issue that has cropped up this week centres on a business that supplies Tata Steel. About 90% or so of the businesses sales go to Tata so the implications are significant. If the business loses its sales to Tata then the business will fail, bringing home the reality of the fate of an organisation the size of Tata
Finding a buyer for Tata in South Wales will not be easy and the chances of any bought business resembling the sold business in 6 months time are remote. Its a fair assumption that Tata wont look back on their purchase of Corus in 2006 with any contentment as its unlikely they will recoup the in excess of £4bn paid.
The wider implications for the 4000 or so Port Talbot workers and then suppliers, such as the business referred to earlier, are profoundly serious with a very damaging setback to an already fragile local economy likely. Sadly the sale process will undoubtedly be clouded and possibly undermined by ill judged comments from politicians, both local & national.
Back to the invoice finance world and another entrant to the single invoice/debtor finance market launching today