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This guide details some of the varying criteria that factors will use in assessing your sales ledger for the purposes of lending finance against. It is fair to say that there are dozens of potential considerations for factors, some possibly relevant to your business, some not. Some of these points if applicable to you may mean that a certain factor will be unwilling or unable to provide facilities or may do so at a reduced percentage advance, whereas other factors may take an entirely different view point or not consider certain points at all. Blue Asset Finance seeks to match the characteristics and requirements of your business to the best selection of factors for you to speak directly with. Saving your time and money. A small example of key differing areas in a factors consideration of your business include:
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· The spread of your outstanding customer balances or concentration to your principle customers
· Contractual obligations you may have to your customers
· The differing opinion of what is an 'unapproved' debt
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Other key areas where factors may differ include:
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· Their financial criteria and assessment of your business.
· The systems they employ to run the facility.
· The quality of service they provide. Particularly true with factoring.
· The ability to provide optional bad debt insurance.
· The ability to fund / credit manage export customers.
· The ability to provide additional asset backed finance such as against stock or fixed assets.
· Not least that of CHARGES.
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