What is the role of a Invoice Factoring Broker?
Invoice Factoring Broker, that is us at Invoice Funding. We are often asked to explain the benefits of appointing an independent and specialist invoice factoring broker to represent companies seeking to access the invoice finance markets. It is certainly possible for companies to deal directly with a invoice factors but choice is limited. Most factors will issue quotations without the broker getting involve, a good broker will negotiate hard on your behalf for the best deal and the right funder.
How can a Factoring Broker help my company?
Invoice Funding’s role as a factoring broker is to provide its client with the most suitable advice and this normally means a review of all invoice factoring and discounting companies offers both at inception and then subsequent renewals. The information gathered during these market reviews can be compared and contrasted and the findings presented in a clear, concise and meaningful way. In our experience, clients place great comfort from the fact the benchmarking carried out by their broker means they have secured the most comprehensive funding finance at a market competitive cost.
As a first step, a invoice factoring broker will gather information about a business usually its size, turnover, what the company does and is it suitable for factoring or discounting. This information gathering is typically done online via email, over the phone by way of an informal chat.
Once a factoring broker has all the information they will start talking to possible lender that match the company from the information that has already been provided. At this stage quotations will be request in view to costs.
Once the funding quotes have been received it’s the role of the invoice factoring broker to discuss and explain which lenders would work best with your company. Which ones offer support in your industry and is the quotation competitive? This is where the factoring broker come in to their own, as a broker will have experience of funders strength and weaknesses after dealing with most factoring companies since 2001.
The benefits of using a Invoice Factoring Broker
Save time searching the invoice finance markets
We all know we are getting busier searching for the right invoice funder is time consuming, looking across page after page on the internet only to be given the same sales pitch by business development people. All will ask the same questions time and time again until finally you get a quotation! Which then lands in a secret agent code, and you need a enigma machine to get it de classified into English .
Invoice factoring brokers like Invoice Funding only take the information once and we deal with the funder on your behalf saving you time. Once we receive the quotations we can explain what it mean in English and more importantly what it will cost!
Invoice factoring broker’s have market knowledge
Invoice funding brokers deals with factoring companies every day of the week so they know individual specialisms, like who funds construction companies and who does not. Which funders require personal guarantees, who funds new starts, the list goes on and on. As we have a good working relationship with invoice factoring companies across the UK and as a leading broker we have access to preferential rates which they can pass on to you the client.
Choosing the right factor first time to get the best deal
Factoring brokers are able to achieve funding quickly for any business that offers Business to Business transactions. Funding can be in place within 5 working days. We ensure you get the best deal first time.
Invoice Funding prides ourselves upon this as we have clients with the same invoice funders for over ten years.
Reason to use an Invoice Finance Broker
The five key reasons Invoice Finance Broker are confident that we can help arrange funding your business.
- Our service is completely free — Our service is free as the invoice finance providers pay the broker a commission by introducing clients to them. This mean the cost to received sound professional advice is free to you and your company.
- Independent free advice — Invoice Funding is one of the UK’s largest independent finance broker, this means we are not tied to any one funder. As we are independent it enables us to place the right invoice funder with the right client as not all invoice factoring companies are the same.
- Who do we work with — Invoice Funding work with over 40 of the UK’s leading invoice factoring & discounting lenders, including well know high street banks as well as independent lenders.
- Quick response times — You can expect quick response times to any enquire and request for funding from us as a broker and lenders as we introduce you too. We will ensure that a regional office local to your business deals with you, so they can respond in quick time should there be any issues.
- Exclusive rates and offers — As you would expect from one of the business invoice factoring broker in the UK, we introduce large volumes of business to lenders. Due to this we have access to favourable rates that cannot be found anywhere else.
This is just a few reasons why we are one of the leading invoice finance broker in the UK.
Factoring Broker Commission
A Factoring broker will have already negotiated to get discounts for business they introduce. As they are responsible for a large amount of financing and it’s in the Factor’s interest to give them advantageous terms. This ensures you will be getting the best deal available, but that deal itself be a on preferential terms that the broker has already negotiated. This one one of the great points of using a broker instead of if you would have secured if you had gone direct.
So, what is the cost for a broker and their services Nothing! The Factoring broker normally recovers fees from the finance company by way of a commission, this will ensure the service is free and you are not charged for the guidance.
How can I arrange for an Broker to work for my company?
It is really so simple to get a quotation for invoice factoring, finance or invoice discounting. Simply complete the enquiry form online and a invoice factoring broker will contact you by return. You can discuss all your funding needs and ask any questions you may have.