Lenders of last resort?
Article Abstract:
The growth of the factoring industry is being hindered by a number of variables, chief of which is its poor image. Since the 1960s, factoring companies have been widely perceived as lenders of last resort, providing assistance only to troubled businesses. Another variable slowing down the growth of factoring is the popular perception that factoring fees are exorbitant. A third barrier is the difficulty of determining where factoring fits into the wide array of financial services offered by banks. The industry is gradually overcoming these barriers. Factoring companies are slowly acquiring a more favorable reputation and many of them have increased their efforts to inform the public regarding their fees and how they are computed. Demand for factoring has actually increased for the first half of 1992, with the volume of factor of turnover reaching 7.52 billion pounds sterling, up by 10% from 1991.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Aids to improving cash flow
Article Abstract:
Factoring companies are in the business of providing immediate cash in exchange for invoices. The simplicity of their service makes factoring firms attractive. Nonetheless, factors are always on the lookout for any measure that will give their products a competitive advantage. Some of the strategies employed by factors/invoice discounters to increase their competitiveness include the use of computer technology, the creation of new markets, the expansion of regional coverage, the development of export services, and the greater emphasis on product labelling. Some companies have decided to rename their services 'Cashflow Finance,' 'Cash Flow Management,' 'Business Management' and other equally descriptive names because they feel that the term 'factoring' does not help prospective clients see the connection between the service and improvement in cash flow.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Factoring: pride or prejudice?
Article Abstract:
Factoring, which involves the sale of a company's trade debts to a commercial finance company, or factor, is recognized by many professional financial advisors as a legitimate way to finance growth. Some accounting firms, however, believe factoring is an expensive method of financing. They do not comprehend that factoring can provide positive services and that the factoring industry is very different than it was years ago.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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