We have been with ScotPac for the last 18 months and recently put an end to the relationship for 2 main reasons
1. We were a full client of theirs which means that they do all our accounts receivables. Our average days to pay prior to joining them was 42 days. Since we joined them it blew out to 54 days. They have a business model that has an inherent conflict of interest built in because the longer our clients take to pay, the more interest we have to pay Scot Pac. We tried to take away responsibility of AR from them but they would not agree. They charge a monthly fee for the collections job which is just another way you get charged for their services.
2. They are extremely rigid. Our business has different types of customers. We deal with big agencies which take up to 25% of our invoices as well as smaller customers. They had a blanket concentration limit on these big customers which would mean that invoices would get automatically disapproved with big $ held back from us.
The issue with that is that as a customer, we are charged on uploaded invoices and not on amount drawn down. So even though we never received the disapproved amount, we were still paying a fixed fee because it was uploaded.
The model is corrupt and not for businesses that are looking for a way out of financial trouble caused by long cash cycles.
We recently moved to Waddle. They are 50% cheaper and a dream to deal with. If you are looking for invoice discounting, stay away from ScotPac
Scottish Pacific Business Finance is rated 1.0 based on
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