factoring

[stuart bloomsbury]

We have a client who is extremely slow at paying invoices. They recently ended the contract with us and are now being quite evasive concerning the 8k we have outstanding in invoices with them. Would it be possible to sell these invoices to a factoring company? What is the likely fee we would have to pay for this, and would a company accept a 'one-off' factoring excercise such as this?

 

There is an online facility which effectively auctions single invoices, though as this appears to be slightly dubious you might find the offer is low.

Have you considered using the services of a collections agency (face to face, rather than just sending letters?)/

 

[dp0848]

There is an online facility which effectively auctions single invoices, though as this appears to be slightly dubious you might find the offer is low.

Have you considered using the services of a collections agency (face to face, rather than just sending letters?)/

I agree with this. I don't think a factoring company would work with you for two reasons. (1) This looks like a doubtful debt and (2) factoring companies look for volume of invoices, they would be unlikely to be interested in just a handful of invoices with one debtor.

I think your best approach would be via a solicitor a debt collection agency.

Hope it all works out for you.

Regards.

David.

 

[dp0848]

One other thought has occurred to me.

If the debtor is an individual or partnership as the debt is in excess of £750 you could threaten them with bankruptcy.

If the debtor is a company then as the debt is in excess of £750 you can apply to the court for a winding up order. Have a look at this link.

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791109&type=RESOURCES

Regards.

David.

 

[hbcraen]

If the debt is undoubted sue them via Money on Line the Government Court service. Very cheap and effective. This will be of little interest to a factoring company. You could try the services of Market Invoice which is an on line auction and offer a very good service. I have met the CEO and was impressed with them. If the debtor is credit worthy you will get a good deal.

 

[GreatSEO]

Try looking at www.factoringsolutions.co.uk

Ian is a great chap and is a member here also

I am sure he could help and if you tell him Dave sent you he might even be able to sort you out a discount.

Unbiased information and great advice is all I have ever had from him.

I hope this helps and good luck with your client paying.

It can be a right pain.

Regards

Dave

 

[GreggJ]

I fully accept I am completely biased in this....but why not use a No Collect / No Charge Debt Collection Agency in the first instance?
We are happy to assist. No Admin costs, no signing on fees.
Let me know. Gregg GB Pimney

 

[hbcraen]

Is the debt undoubted and how credit worthy are the debtor. If the answer is positive to both I may be able to help.