Not at all. Factoring is now so well established that your customers will probably already be dealing with a factor, either by using one themselves or through other suppliers. This is reflected in the figures - in 2019 the total volume of business handled by factoring companies around the world was close to 2,923 billion euros. 

Factoring is a service industry and in order to survive it must offer excellent service. If FCI members did not offer high levels of service, we would quickly lose our clients' business. And that would more than offset any gains in interest income generated through slow payment collection. On top of this, it wouldn't make financial sense: it's well known that the longer a debt is outstanding, the greater the chance that it will turn bad. We don't want to increase our risk in this way.

Factoring is a combination of financing and services. Because of this it is impossible to compare factoring with bank finance or credit insurance companies. The package includes not only finance - which is priced very competitively with bank finance - but also 100% credit protection on your approved customers and a full invoice collection service. Our fee is very reasonable - especially considering the cost you would incur chasing payments abroad, the cost to your business of a bad debt and the loss of potential profit if you are unable to finance growth.

We are unable to cover this risk. Our risk coverage takes effect from the day the goods are shipped, which is the point at which an invoice can be issued. Pre-shipment risk coverage is available from some insurers but it can be quite expensive. This sort of insurance is usually only used by businesses whose goods have a long production time or are highly specialised and would be difficult to re-sell to another customer if the original buyer files for bankruptcy protection prior to shipment.