Home > Uncategorized > Invoice financing. The need for a shakeup

Invoice financing. The need for a shakeup

At the present time I am attempting to find the right lender for a particularly decent prospect of mine in the software business. My client’s terms are far from demanding and you would assume that with so many lenders in the market competition would be fierce.

Far from it

Without going into laborious detail, the invoice financing sector can often give the impression that they use just one underwriter between them. An underwriter who can do little more than repeat the same mantras and is too idle to look at a prospect in a professional manner

To briefly explain, the “difficulty” with this business is that they supply build and support. Apparently this would lead to one being “set off” against the other in the instance of my client defaulting. It would appear that this has happened before. Once i would imagine

What a load of rubbish. The two contracts are completely separate. Any attempt to not pay for completed ‘build’ because of no support (which If the lenders had bothered to inquire, is a very minimal element financially) would not last five seconds in court.

In effect these lenders are saying they will not back an entirely contractually enforceable watertight debt to a blue chip client. If I had taken such a stance in the commercial world of credit management I would rightly have been fired

If the underwriters cannot understand legal enforceability then they should find a new career. Parking tickets would be a good place to start.

Fortunately I can credit a couple of lenders for taking the time to work with this and a solution may be in the air and perhaps even more significant is the entry of the online lenders into this market with an open and realistic approach.

This will continue to lead to a shake up in the industry and is more than welcome. There is too much deadwood

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: