When dealing with clients we are often told that the facility “must be confidential” because they fear their customers response to them factoring.

I can accept that historically factoring was the finance of last resort but this is no longer the case. Banks today can no longer be secured over a debtor book by way of a simple debenture. This means that overdrafts have become a rarity unless secured elsewhere. As a result invoice finance has become the preferred route for growing businesses.

If you have a business you can almost guarantee that your customers will have other suppliers who are using factoring and they will be well aware of it. It is certainly not a sign of financial problems.

While confidential facilities are available they may require you to “trade off” on other areas of the facility such as prepayment or pricing. It is therefore important to consider what is most important to you when looking for a facility and focus on those areas.

The key is to understand what your options are and to make an informed decision. If a confidential facility remains your main objective Smart Factoring Quotes are well placed to assist.