New Service | Confidential Factoring

Date28 Mar 2018

Peak Cashflow is delighted to add a new specialised product to its invoice finance offering, Confidential Factoring.

We have recently encountered a number of scenarios where prospective clients are very keen to retain confidentiality within the facility from their customers but don’t always have the back office support or systems in place to manage a full confidential invoice discounting (CID) facility.

In addition to this, the industry has historically only offered CID funding to companies, which have been established for over 2 years and hold a net worth in excess of £50k. Although these guidelines have been relaxed over the last few years, the number of business’ that are able to gain CID is still limited.

In 2018, the dated view relating to the ‘stigma’ of factoring has almost completely disappeared. However, there are still circumstances where confidentiality is key. Therefore, we have been looking at how we provide a product which could combine confidentiality alongside the benefits of credit control and sales ledger administration for those companies who need this support.

Our competitors have, in the past, offered similar products which have had limited success. This is due to internal credit controllers dealing with confidential and disclosed clients one after another. This, at times, resulted in confidential debtors picking up on the fact they are dealing with a factoring company. Once the debtor is aware, it is then too late.

In order to prevent this ever occurring, Peak has teamed up with a very experienced small team of credit controllers. This team already provide stand-alone credit management to a host of ‘none factored clients’. They will conduct the credit control. They will also work hand-in-hand with Peak, so we can provide a truly confidential finance facility.

There can be no instances where the debtor accidentally finds out they are dealing with a factoring company. Also if the client no longer needs Peak, they can then continue with their back office support uninterrupted.

Fees will, of course, remain competitive and flexible. Depending upon the amount of work needed to manage the sales ledger as no two ledgers are ever the same.