Roger Herbert, executive in charge of the Banking Council's debtor financing committee, says the industry is working to educate financial professionals and the business world as to the true value of debtor financing, including invoice discounting and factoring.
"We have established a website so that people can gain direct access to information about every aspect of the industry, its products and services," Herbert says.
The key areas of misinformation revolved around the misperceptions that debtor financing is expensive and is only used when a company is on the road to liquidation.
In fact, the target customer for the industry is the high-growth business that cannot afford to have its cash tied up in its unpaid debtor invoices.
Johnny Philippou, MD of Merchant Factors, says there are two very important misconceptions that businesses and even professional financial advisers have about factoring.
