Attitude to risk polarising UK factoring market

5/3/2009

UK factors continue to polarise in their attitude to risk, according to the LC Factoring Advisory Service, one of the UK's central resources for factoring advice.

"Funders are still willing to lend," comments Les Gordon, Director at the LC Factoring Advisory Service, "but there are varying attitudes to risk across the industry. This means there is an influx of manage-aways on the market, as factors averse to short-term risk divest their portfolio of what they see as undesirable customers.

"There are however some commercial funders who are still willing and able to take on these businesses and we have been successful in finding new facilities in most cases."

Gordon also asserts that more businesses approaching them for funding advice require a turnaround strategy to first be put in place, to improve their chances of securing finance. He continues: "The most common problem we're seeing is mounting VAT and PAYE debt.

"In spite of this problem, where there is a strong business case, we are often able to agree a time-to-pay with HM Revenue & Customs on behalf of a company. Our experience shows this action is often enough to put the business back on a surer footing, and better positioned to approach funders for finance."

Leonard Curtis re-launched the LC Factoring Advisory Service at the beginning of the year to guide companies through the complex asset based finance market, offering free and confidential advice to match clients with factors best suited to their specific needs.

For more information, or to contact an advisor, visit www.factoringadvisoryservice.co.uk.

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