• 19 Aug

    Problems With Home Ownership And Poor Credit History

    We have had an issue recently with a factor turning down a small recruitment company, that we had introduced, due to the prime movers not being homeowners and having some previous defaults on their credit history - not CCJs, defaults. It is hard to believe that any factoring company would turn down the chance to fund a small recruitment deal, considered the "bread and butter" within the factoring industry.

    This approach of insisting on home ownership, and no adverse credit history is so far away from how I was taught to look at deals when I was working for a major invoice finance company. The prime security was always the debt, and solid debt would excuse many issues around the personal credit position of the prime movers - recruitment sales, with signed timesheets, is about as solid as debt can be.

    Factoring Companies Who Are Not Risk Adverse

    Fortunately, there are factoring companies that do not take such a risk-averse approach to these types of situations, and they will be sympathetic in such cases - it is just sad to see the issue of home ownership becoming such a stumbling block for some providers within our sector.

    See also our article about Getting Invoice Financing With Bad Credit In The UK

    By Glenn Blackman

Share with:

Examples of funders we work with:

ifg
berkeley
bibby
metro bank sme finance
time finance
pulse cashflow finance