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Let’s face it, nobody likes chasing a client for payment. There’s nothing quite like upsetting a supplier you’ve worked hard to please. However, it’s an important, necessary part of every business. It’s really easy to forget to forward an invoice to the finance department and with so many companies requesting longer payment terms has never been so difficult to get right. Banks will sell factoring as a way of mitigating the challenges of credit control, but it comes at a cost and could be avoided with good business practice. The downside to factoring is that inevitably your provider (this could be your bank or specialist provider) will register a charge over your business’ assets and you will be tied into a paying a fee every time to release funds into the business. Unless you have margins that comfortably allow for you to pay this fee (and it might not stay that way forever) factoring is an expensive and debilitating way to manage credit control. If you’re confident in the creditworthiness of your customers, a loan might be a better way to consolidate debts and free working capital to allow the business to grow, if you have solid expansion plans. With rebuildingsociety.com you don’t pay any early repayment charges either, so you can refinance at any stage. This sort of flexibility doesn’t exist in a traditional factoring survey. If you’re currently using factoring, or are thinking about doing so, a good question to ask is why. Here is a handy survey to find out if your credit control practices are up to scratch with some practical advice on how to change them. You might save yourself valuable cash just by making a few changes and achieve faster growth with a loan instead. Apply for a loan with rebuildingsociety.com