Jump to content

Factoring Solutions

Registered Users

Change your profile picture
  • Content Count

  • Joined

  • Last visited

Community Reputation

1 Neutral

1 Follower

About Factoring Solutions

  • Rank
    Basic Account Holder
  1. The above is taken from the "Business Charter" on the website of Lloyds TSB Commercial Finance If the amount owed at termination was £8,000 and they added a further £4,000 in termination fees, what does the other £14,000 comprise as I assume that it has appeared in some form on a statement
  2. The personal guarantees are probably enforceable but in general factoring companies won't persecute you just for the sake of it if they can see that they are unlikely to recover their money and that you have also lost too.
  3. My factoring law is many years out of date but in my day all personal guarantees used to start "In consideration of your agreeing to offer a factoring facility to XYZ Ltd" and the consideration was that the factor would not offer a facility unless the personal guarantee was given. Nowhere in the legal documents would it mention any order in which the factoring company would look to recover it's investment although in this case it would seem that Iannun may have a letter written by the factoring company that could prove useful in establishing that his guarantee would only be invoked when all other options had been exhausted.
  4. That is scandalous and I have never heard of Bibby or any other factoring company acting in this aggressive manner except when they think that their client has defrauded them. I do have a relationship with Bibby although not their Yorkshire office and if you want me to try and make some discreet enquiries to find out why they acting in this manner I am more than happy to do so.
  5. I am pleased that they backed down as all too often these bank subsidiaries steamroller the small company knowing that they have unlimited funds (now ours) whilst their client can probably not afford to take the matter to court. I have been in factoring for donkey's years and many years ago even designed a new factoring agreement which naturally protected the factoring company from almost every eventuality whilst affording little protection for the client. These agreements aren't the sort of document that anyone would read in great depth and understand the full ramifications and if they did they probably wouldn't want to sign it. Factoring agreements are signed unread just as are mortgages and hire purchase agreements as one signs them in the hope that the well known name that you are entering into an agreement with will act honourably at all times. Still, all's well that ends well. Ian
  6. Are the debts collectable. If so I would advise you to do your utmost to ensure that Bibby are paid as all they are interested in is getting their money back. It is unusual for a factoring company to "pull" it's funding and follow that up with a stautory demand unless there are extenuating circumstances. Did you bank any cheques that were due to them ?
  7. I've come to this thread rather late having found this thread after Googling for someting else It's a sorry state of affairs and not one that I find to be unusual as at least one of the High Street owned factoring companies are reknowned for having a sales force that promise prospective clients all sorts of things that the operations department later refuse. It's all well and good stating that the company should have read the agreement in detail but with the best will in the world which small company will read a multi page document all written in legal gobbledygook. You cannot compare a salesman from a subsidiary of RBS with a double glazing salesman unless of course you are happy to compare Royal Bank of Scotland with a double glazing form. People are entitled to expect higher standards from such a well known bank and at the very least the agreement and operation of the factoring facility should be explained fully to all new clients. The bank may come under the banking regulatory body but unfortunatly the factoring subsidiary does not and whilst many think that there should be seperate regulation for factoring companies, sadly there isn't
  • Create New...