A lot of couriers that Factor their invoices seem to go out of business quickly

A bit of a slur on the well-run companies that factor Simon?

Factoring is only good for one thing – to finance rapid, continuous and sustainable growth at high margins – and it’s only good for that if the company’s run well enough to keep the factoring company’s incompetence in check.

The question is, whether it’s the factoring companies’ incompetence that bankrupts the courier company or whether some courier companies make inappropriate use of factoring companies.
 

Posted under Courier Financial Issues, Late Payment

Posted by Alec at 4:51 pm, February 26, 2007

1 Comment so far

  1. I do think it should start alarm bells ringing if a company that factors is unable to pay their own suppliers on time though.

Leave a Comment

Name (required)

Email (required)

Website

Comments

Comments

Next Post:
Previous Post: