Factoring and invoice discounting has seen phenomenal growth this decade and on the back of this growth has come a sharp rise in the number of brokers
all claiming to offer their independent advice and expertise to find customers the best deal.
Unfortunately the reality is very far from the truth as the popularity of the internet has seen a surge in internet only based “brokers” who in reality are
little more than clever website designers attracting interested parties to pass onto a third party for a fee whilst many of the rest are anything but independent.
The unsuspecting customer may expect to be receiving unbiased advice from an experienced broker but that is seldom the case as many of the high profile
factoring brokers are anything but independent and unbiased.
Leaving aside the
high profile broking outfit that is actually owned by
the Bibby Factors group, several of the others earn the major
part of their income by carrying out audit and other work on behalf of the factoring companies on a mutual back scratching basis and if they ceased producing leads for the
factors their lucrative quid pro quo accounting work would soon dry up.
Unfortunately there is no regulatory body but at least the Association of Independent Factoring Brokers will attempt to provide some degree of transparency.
