Subject:
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Re: Suspension of UK factoring services (was Re: Suspension of English factoring services
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Newsgroups:
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lugnet.market.services
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Date:
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Wed, 22 Mar 2000 18:57:49 GMT
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Viewed:
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4397 times
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> I feel I have not "gained". The buyers who use the service, at their choice,
> to pay me may well have gained through lower transferral charges (although I
> know this may not be the case). When I sell an item, I set a price. The
> buyer must get that money to me using a method which is acceptable to me. I
> do not see how I am gaining in any way. I'd appreciate some clarification on
> this.
The lower prices caused by the lower costs of money transfer if you
use the factoring services was what I was getting at.
You and the
buyer have both as far as I can see gained through that. The buyer
gains through only paying a charge of a couple of dollars instead of
a large bank charge of - in the UK up to the equivalent of $15 (from
Lloyds and Barclays rates). You gain because you've set the price in
US$. When you get the cheque in GB£ calculated at a more generous
exchange rate than a bank would give you (because our exchange rates
are not adjusted to give us a profit on them) you get a bigger amount in £.
Note the fact that you've gained from this doesn't in any way imply
any dishonesty or bad motives on your part. As far as I can see you've
simply gained because the sale went through a cheaper exchange mechanism
than if you'd gone through a bank. Morally I don't see that as any
different from me buying something at - say - Comet for £80 when Currys
next door are selling the same thing for £100 (actually happened when
I bought my vacuum cleaner <g>).
> <and>
> > One last point - I'm a bit puzzled by Scott's comment
> > that
>
> > > I'm sure matters have been made worse by the recent exchange rate
> > > fluctuations. As a seller it is good news for me,
>
> > given that the usual complaint in the UK the last couple
> > of years is that the UK pound has been so strong that
> > it's really cheap for us to buy things abroad and
> > very hard for businesses to export anything. Scott?
>
> It is because I deal in US$. Say I sell the 8880 at $160. A few months ago
> this translated to UKP97, now it gives UKP103 (these are v. rough figures).
Ah - I get you. You're getting at the £ being not as strong now as it
has been recently.
Simon
http://www.SimonRobinson.com
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