Factoring credit control
What is credit control factoring?
With credit control factoring you typically get what you pay for. For example, the larger bank owned factors will usually fully automate their credit control and it will be done by automated letters and month-end statements. They may call your largest debtors but it will be a hands off approach, this is a similar attitude to how invoice discounting funding limits are considered and enforced.
Other factoring companies will provide a hands on credit control service where they call each debtor and have open communication with you the client. This however is time consuming and as such the cost for such a service is more expensive, also it is not in the spirit of confidential invoice discounting.
There is a stringent checking procedure that MarketInvoice carries out prior to any company trading on the platform, there are credit checks and assess terms and conditions. Not every company is accepted.
- There are significant checks for fraud and other debentures
- Additionally, the invoicing must be directly to the large corporate debtor rather than to an intermediary
The MarketInvoice team will be happy to guide you through this process which is relatively quick and painless.
By accepting invoices from blue-chip debtors risks that an invoice will not be paid are reduced, although the invoice and the debtor are thoroughly screened before the invoice can be auctioned. Blue-chip debtors are large corporate clients that are very strong financially, with a solid track record of producing earnings and only a moderate amount of debt. Often blue-chip companies are found on the Dow Jones Industrial Average.
A factor can damage your relationships with your customers. When pursuing unpaid invoices they might be much more forceful than you would be. MarketInvoice offers a service that is:
- Confidential; your clients will not know that you are using Marketinvoice
- You retain the communication with your customer, and it is your responsibility to chase up the invoice. You maintain credit management
- Your customer will pay the invoice to an account in your name held with MarketInvoice, but our name will not appear on the account