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Our Strategy

At Strathspey, we believe that, in order to survive, factoring business must be profitable, compliant and able to deliver an exemplary customer service package. The combination of these brings with it a number of key challenges that will only be wholly met by consolidation of factoring businesses:


Stagnant Market

The current economic climate has resulted in a minimal number of new developments under construction or planned in the foreseeable future. This has resulted in a stagnant market with very limited growth forecast in the next three to five years.

Management Fee Restrictions

Competitive pressures are resulting in Management Fee restrictions. An absence of new business has increased competition as factors try and win existing business from competing factors. In addition to this, with the introduction of the new Act, all additional revenue, commissions etc must be declared to the customer.

Low Churn Rates

Many residents’ associations are apathetic about changing Factor due to perceived difficulties in the handover process. Some believe that all Factors are the same and, as such, there is little point in changing. This provides little opportunity for organic growth within the business.

Greater Expectations

Many residents’ associations are becoming more formal with increasing expectations of their Factor. This results in an increased need to deliver excellence, something that many factoring business are not sufficiently resourced to deliver.

Client Debt / Economic Climate

Throughout the industry, we are seeing an increase in the amount of bad debt, due, in part, to the economic climate. It’s sometimes an easy option, if debt is not aggressively managed, to withhold payment of the Factor’s bill as the customer cannot be put on “Credit Stop”. Increasing levels of debt result in increased demands on the credit control team.

Factors’ Act

The introduction of the Factors’ Act will necessitate a significant improvement in in-house controls, processes, procedures and service delivery requirements, resulting in an increased cost of compliance. The Scottish Government is keen to address concerns regarding the Factoring Industry following high profile investigations into rogue Factors in Glasgow, the Statutory Notice scandal in Edinburgh, etc. Formal complaints to the Homeowner Housing Panel will result in an audit of Factors’ business operations and possible removal from the register.

Financial Services Authority

The FSA will, in 2013, be replaced by two bodies; the Prudential Regulatory Authority (PRA), who will continue to monitor the larger organisations such as banks, insurance companies etc, and the Financial Conduct Authority (FCA), who will focus on the regulatory compliance of smaller companies such as Factors. Strict compliance with the FCA regulations will be required to ensure continued authorisation and the ability to provide block insurance policies, without which many Factoring business cannot function.


There are significant consequences of these challenges for many factoring businesses.

  • Limited opportunities to increase revenues, combined with increasing compliance costs, will require cost savings to maintain margin or to survive
  • Cost savings will be difficult to achieve for small, standalone, businesses
  • The costs of new compliance will also affect small businesses disproportionately due to lack of economies of scale
  • The market requirement to manage costs down will, therefore, lead to market consolidation


The solution to these challenges is to consolidate smaller Factoring business, allowing centralisation of a number of functions such as:

  • Credit Control
  • Regulatory and in-house Compliance
  • Insurance
  • Administration

Strathspey Capital is uniquely positioned to successfully acquire and consolidate factoring businesses. Its Directors have a unique combination of knowledge which includes the following key strengths:

  • Proven track record in hugely successful business acquisitions and integration
  • Sound knowledge of the Factoring business in Scotland
  • A realistic and pro-active recognition of the challenges that lie ahead
  • Expertise in regulatory compliance and ability to produce in-house controls that allow regulations to work for the business not the other way round
  • Expert knowledge of best practices and business efficiency allowing maximum profit and exemplary customer service

Discuss your current and future property management business plans

If you are interested in discussing your current and future business plans, please don’t hesitate to get in touch. All discussions will, of course, be treated confidentially.