The short-term acquisition of working capital by assigning accounts payable to a third party financial services provider is an increasingly popular means of raising finance.
Estimates of the use of factoring vary but the sums involved are suggested to be between a remarkable 10-20% of all commercial transactions within the UK.
Factoring providers may benefit from specialist legal advice in order to successfully pursue litigation actions against clients who default on or falsify invoices.
Legal advice on effective credit management, finance and the recovery of debt is an important part of the firm’s specialism. Connell Associates is proud to be a member of the UK’s representative trade association of factoring providers, the Asset Based Finance Association (ABFA).
Since its inception in 1976 ABFA now represents over 48 000 businesses transacting around £173bn of clients’ invoices each year. Michael Connell is an ABFA Trustee, working with the industry to further promote sound credit management and the ongoing development of the appropriate legal framework.