Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 23 Feb

  Transfer Of Factoring Clients From Barclays To 4Syte

  

  According to the 4Syte Group's website (post dated 22/02/21), they have entered into an agreement with the high street bank Barclays for the transfer of assets from the bank's factoring portfolio to 4Syte Group.

  This is a remarkable move by Barclays, who have been one of the UK's major factoring providers for many decades.

  Transfer Of Factoring Assets From Barclays To 4Syte Group

  Interesting news that Barclays are apparently seeking to move some part of their factoring portfolio to another provider. It comes as somewhat sad news, having worked for them myself for over a decade, specifically managing clients from their factoring portfolio.

  4Syte Group are an independent, Chelmsford based factoring and asset finance company. This move is a major achievement for them which could generate significant growth of their factoring client portfolio.

  We already deal with 4Syte Group, they offer a great range of business financing services and are members of UK Finance. Therefore, clients have the reassurance that they are bound by the UK Finance code of practice.

  Transferring Factoring Clients

  This breaking news puts meat on the bones of the rumours about a factor transferring factoring clients that have been circulating around the invoice finance sector recently.

  Factoring

  A factoring service is one that combines both prepayments against invoices with a credit control service. The credit control element is what makes it a factoring arrangement, as opposed to invoice discounting - which provides prepayments only.

  There are currently over 100 invoice finance companies within the UK, many of which offer factoring. If an invoice finance company provides factoring, they undertake the credit control on behalf of their client and this can save the client from having to undertake the work themselves, or employ credit controllers. Understandably, the time and cost savings from this type of outsourcing can be significant. These cost savings can be offset against the factors charges.

  The exact nature of the factoring service provided varies between different providers, as does the cost and the flexibility of funding. In some cases other services are included such as the provision of bad debt protection and the handling of export sales by the factoring company.

  ---

  Source: 4Syte announcement of the Barclays transfer agreement.

   

  By Glenn Blackman