This is the big growth area of the factoring broker community as the larger firms of insolvency practitioners try to grab a slice of the insolvency action from factoring company clients on a quid pro quo basis. Many insolvency specialists have now set up their own broking divisions (often headed up by ex factoring personnel) and are using their influence as introducers to obtain lucrative insolvency work. Unfortunately this could often mean that business is introduced to the factoring company more likely to benefit the introducer than the client himself.
Touch Financial the high profile self proclaimed largest invoice finance broker is actually part of the SFP Group of insolvency practitioners which has close relationships with several of the independent factoring companies and if that wasn’t enough they have a second bite at the cherry with their factoring.org.uk website.
Factoring Advisory Service is another active broking outfit and this is part of Leonard Curtis’s insolvency firm although it is not mentioned at all on their website.
There are many others but in the main they tend to operate under their parent’s name.
Other Quid Pro Quo Brokers:-
Several high profile broking outfits also obtain a large part of their income by working for factoring companies carrying out client audits for them and with the best will in the world it is difficult to see how brokers like this will be offering impartial advice when their own income depends on mutual back scratching.
To date there was only Cashflow UK – formerly known as Factoring UK, who made no mention on their website that they were actually a wholly owned subsidiary of Bibby Factors.
Specialist Independent Factoring Brokers:-
Unfortunately there are very few of us who are specialist enough to know the whole marketplace and independent enough to introduce business to the factoring company most suitable for the prospect without fear or favour and that is one of the reasons why the Independent Factoring Brokers Association was set up