Back to Basics (Published February 2004)
We offer trade and transaction finance to SMEs. That is normally finance to
enable specific transactions without affecting existing bank facilities. Although
we often do the "difficult and unusual", we have evolved as the market has moved
and we have gained experience. We started in 1991; we have changed a lot since
then. What was "difficult and unusual" in 1991 is now standard, and we have
moved to new territory.
We have had a very successful relationship with a publishing company since
1997. They wish to remain anonymous for competitive reasons. On a sad but inevitable
day recently I took a call from their MD. They have been a model client since
they started, at which point they were well established, but "financially challenged".
They have several trade titles, each related to transport infrastructure all
over the world. Their income is mostly from advertising by large corporates,
but in every continent. We merely factor their UK and international debts. Individual
invoices are quite small and mostly in foreign currencies, mostly dollars and
euros now. But now they do not need us any more.
"We can only think of two clients who have left us for
a competitor in the last four years . . . "
When they started we were doing something a bit "racy" by the standards of
the time. However, I expect they could have left us for a cheaper competitor
some while ago as they became stronger and competitors moved towards what we
do. They stayed because we have always responded quickly when they needed help
beyond the terms of the agreement. We have pre-funded the debts on an intended
publication; we have advanced about 120% of a multi-currency ledger at times,
although not recently.
Obviously our competitors have many satisfied clients too. We all work hard
to help people, particularly those we respect. In our case it is reflected
in client loyalty. We can only think of two clients who have left us for
a competitor in the last four years, and in each case their needs had changed
and we had done our job. A cheaper, more "generic" option was then available.
Our publishing client does not need to factor any more. Another success for
our industry. Sad for us! We are left with a kind letter of appreciation.
Over the last few months, I have written about some of the more exotic ways
in which we have helped people and businesses finance their transactions. Not
everything we do is exotic. Many people just want an excellent service.
Back to basics.
Written by David Ross Director
Download
the Article 'Back to Basics' at www.fairfaxgerrard.co.uk/docs/BusMon 0204 Back to Basics.pdf
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