Have broken a habit

[suityou01]

Thanks but I'm not worried about the cash flow, but the risk of non payment with no remedy. I doubt I could transfer that risk to a factoring company, could I?

That's kind of the point of a factoring co mate

[suityou01]

Contact Hitachi Capital Invoice Factoring for a Free Quote!

[suityou01]

Also if not factoring, build in rewards for early payment and penalties for late payment.

[eek]

That's kind of the point of a factoring co mate

Its not usually the case. Factoring companies will lend you money but reserve the right to claim it back if the end client doesn't pay..

From http://forums.contractoruk.com/busin...ml#post1717738

Most factoring companies offer insurance as an added extra, it is generally not included in invoice factoring. Similarly many factoring companies do not offer any kind of collection or ledger management services as standard. Often If the factor doesn't get paid for an invoice they have already paid out on, they simply reduce next months payment by the same amount and give the "debt" back to you!



We can recommend a potential supplier if you PM us, but credit insurance is not a magic bullet. Generally they will only provide insurance on invoices to stable businesses with proven financial history.

If you have a potential contract from a one man band agency operating via a relatively new Ltd company, forget it. They are extremely unlikely to offer insurance in that instance.

The best way to ensure you don't get caught out is to thoroughly vet potential clients before agreeing any credit and to continue monitoring them throughout. If in any doubt do as Bolshie suggests, negotiate shorter payment terms and stick to them.

Which just shows that once again people on here really don't know what they are talking about

[suityou01]

Oh boy it's like shooting fish in a barrel today.

If the factoring transfers the receivable "without recourse", the factor (purchaser of the receivable) must bear the loss if the account debtor does not pay the invoice amount.[2]

HTH BIKIW

[suityou01]

Linky

Recourse vs. Non-Recourse Factoring. Which is Better?

[eek]

Recourse vs. Non-Recourse Factoring. Which is Better?

That's an american company you muppet..... No matter what you may think companies work differently in the UK compared to the USA....

And in the UK most factoring companies don't offer insurance or non-recourse (how american is that phrase) factoring against small companies....

[suityou01]

Incredible

Ok here's a uk site

Non-recourse factoring explained :: What is factoring?

This is too easy.

[suityou01]

And here's one of those mythical factoring houses I mentioned

Debt factoring without recourse | Touch Financial

[eek]

This one is turning into a bit of a marathon.

Client (a consultancy) has accepted changes so it's looking like a good contract now - in respect to original points raised.

But I also queried payment terms which are payment 10 days after Consultancy's client has paid consultancy(!) Which leaves MyCo stuck in case of non-payment or late payment. Who can MyCo sue? There us no question about end client's ability to pay but that doesn't mean they will pay. They appear to be unwilling to budge but I will continue to try to negotiate.

Has anyone else ever come across this?

Yep and I ran away from a consultancy for that exact reason. Especially when you put 2 and 2 together and realise that you may not get paid because another contractor screws up the relationship resulting in the agency not being paid.

I should point out that SimonMac did work happily for the same consultancy for months....