Factoring Companies Guidebook
A charge made for any other that the normal product or service of the Client.
Such sales will include:
Sale of fixed assets including vehicles, plant, fixtures and fittings etc.
- Management Charges
Rent charges and other associated property costs.
Default or Penalty charges (cancellation of order or breach of contract)
Storage charges where they are outside of the normal course of business.
These are normally outside the scope of the Agreement and may be subject to non standard terms and conditions. Penalty charges are likely to arise as a result of a dispute and they, by their very nature, would be disputed and inevitably prove difficult to collect. Rent and storage charges are often invoiced in advance.
A review of the invoices should reveal sales of an exceptional nature, particularly where they are material, but if they are not material and we do not have sight of all invoices, they would be difficult to identify.
Sales of this nature should not be assigned. Where they have been, they should be reserved in full.