Factoring Companies – useless wankers

I’m sitting here, working into the evening, trying to sort out the absolute cock-up that Lloyds TSB Commercial Finance have made of my account with yet another of their clients. I’ve posted, emailed and faxed our detailed Remittance Advices to them and Anna’s given them the information over the phone, yet they still seem incapable of applying our payments to our suppliers’ invoices. We never used to have this problem with them, in fact until about 3 months ago I would have said they were the most efficient factoring company I’ve come across. Is it just me or is everyone finding these people to be an absolute nightmare at the moment?

Are the companies that use these people aware of what a bad impression they make on their customers and how they actually SLOW DOWN the payment process? They’re all as bad as each other of course, I’m just singling out LTSBCF because of the way they’ve quickly gone from being one of the best to less than mediocre.

You companies that factor obviously don’t understand the damage that these cretins can do to your businesses.

Posted under Courier Financial Issues

Posted by Alec at 7:27 pm, September 5, 2006

5 Comments so far

  1. I got carried away. the original reason for starting the thread was to inform all our suppliers that use factoring companies that we will no longer be sending Remittance Advices to your factors – instead we will email them to you at the address listed for your ‘Finance Email’ on ‘Network’. Whether you pass them on or not is up to you, but we will not engage in any further correspondence or telephone conversations with your factoring companies.

  2. You’ve not noticed any decline in service in the last few months then Lawrence?

    Yes, it would be nice if some people chose not to factor their invoices to us if they have the choice. Maybe they could also send me the 2% (or whatever) factoring charge in cash as an incentive to keep their invoices at the top of the pile.

    Seriously though, it does rather annoy me to know that a percentage of the money we pay people goes to these idiots and all they do in return is actually DELAY our payments from reaching our suppliers.

  3. Andy, I’m going to side-step your questions and just say one thing. If you can possibly avoid going down the factoring route then I suggest you do. If you expect your turnover to rise significantly in the foreseeable future and to continue to rise at a rate where your sales ledger can’t be financed out of profits then factoring is possibly a good decision.
    Otherwise it’s probably not – in my opinion.

    In my experience customers tend to pay factored invoices much slower than non-factored ones – they don’t owe you anything any more, they owe a bank and they’ll take as much free credit from a bank as they can. The ‘team’ that’s ‘managing’ your sales ledger only has two modes: for 2 months they go through the motions and contact a few of your customers to check they’ve received your invoices (they do this more to protect themselves from your possible fraud than to attempt to collect your money), then once you prod them into action and ask them why all your invoices are being paid later than usual they go into overdrive and start being rude to your customers.

    The concept of having a factoring company managing my sales ledger has always concerned me. If they make their money by charging me interest on the money I’ve borrowed against unpaid invoices why would they put any effort at all into collecting that money and reducing my borrowings?

    Since starting this thread I’ve been informed by one of our suppliers that LTSBCF have laid off a lot of staff and are relying more on technology to do their work for them – which is presumably why they’re not bothering to look at the remittance advices that we send them and why they seem to be suddenly producing ridiculous numbers of automated query letters.

  4. Alec added on  January 22nd, 2007 at 11:30

    They’ve gone away since I last asked for copies of the ‘overdue’ invoices. Barclays are messing about at the moment – chasing November invoices that were paid in November.

    I bumped the thread because I noticed it when I was looking for the ‘New Legislation’ thread.

  5. I’ve just re-read my first posting and realised that almost 5 months later I’ve still got LTSBCF phoning up over the ‘debt’ that I was trying to track down back then. They can’t even give me the invoice numbers that are supposedly outstanding because they’ve applied payments to the wrong invoices. Cretins.

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