Invoice Funding are one of the UK’s largest and leading Invoice Factoring Brokers. Since our birth in 2005 we have helped 1000’s of UK based business secure the Invoice Factoring Finance they are in need of. As independent leading brokers we will arrange the best fit for your business. We work with a number of high street and alternative factors.
We had recognised the gap in knowledge and advice available to business owners, accountants and other professionals when it comes to funding options, in particular Invoice Finance. We have a great working relationship with invoice Finance companies and have agreed preferential discounted rates, which as Independent Invoice Factoring Brokers we pass on to you.
What is an invoice Factoring Broker?
An invoice factoring broker is used when a UK business needs help to choose the best option available and wants to shop around for a great deal without doing too much of the leg work themselves, a broker can be a good option. While factoring brokers do play a necessary role in the process, it’s an important consideration to note that the brokerage and lender industry has changed over the last few years. There are now many more lenders in the space, many of whom have developed a range of products that utilise digital online technologies, software decisions and online case tracking systems.
The growth of these new systems have been created to offer customers a faster decision time without the requirement of out-dated paperwork applications. These technologies are only becoming faster and more precise especially with the emergence of Open Banking even more utilised in the assets finance enquiries.
Invoice Funding’s platform is designed for B2B customers to harness the breadth of the invoice finance market and receive quotes best suited to their needs. All the middle work you’d expect from an invoice finance broker but making the whole process easier, quicker than ever before. And, unlike some factoring brokerage services we don’t charge the business any fees for using the service – it is free to use.
Limited business (LTD), Sole Traders, Limited Liability LLP’s, Partnerships and Start-up businesses are all cater for by our informative and helpful team.
Invoice Factoring Brokers Why Use Them?
Once your enquiry has been received, we will look to understand your needs and expectations and we will match you to the most appropriate funders from our invoice funding panel. We also understand that your business needs may change over time. For this reason, we dedicate a Consultant to each customer to ensure that our service proposition lasts throughout the lifetime of your business. We have a funding panel of over 40 invoice factoring companies and we are confident we will be able to assist you in selecting the right funder for your business. As we understand funding, we are confident we can place you with the right funder, at the best possible rate. Just one reason you would use us as your Invoice Factoring Broker.
What is the role of a Invoice Finance Broker?
As a first step, an invoice finance 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 one of our team 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 finance 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 tfinance broker come in to their own, as we have an understanding and the experience of funders strength and weaknesses after dealing with most invoice finance companies since 2001.
How does Invoice Factoring work?
Invoice Factoring companies provide you with both the working capital you need to grow your business and the time you need to achieve this. Here’s how it works:
Step 1 (Invoice) – You raise an invoice with a customer, containing information on how much the customer needs to pay and in how many days.
Step 2 (Cash Advance) – You send a copy of this invoice to the factoring provider, who will pay you a pre-arranged percentage of the invoice within 24 hours.
Step 3 (Growth) – You now have the cash available to cover the costs of your next job and reinvest back into growing your business.
Step 4 (Repayment) – By factoring invoices, you will not have to do much else. The factor will collect the payment at the previously agreed date from your client and send over the remaining value of the invoice you did not initially receive, minus pre-arranged fees.
The Role Of Factoring Brokers
The role of the Invoice Funding as factoring brokers are the following:
- Factoring brokers introduce clients seeking invoice to an appropriate factoring company based on the businesses individual needs.
- Brokers are to be impartial
- Being independent is critical for Brokers
- The entire factoring market will be scanned for a suitable lender
- They know all of the factoring companies niches, strengths and weaknesses
- Most brokers are free to use as they get paid a commission by the factoring company.
Advantages of Invoice Funding
Aided by the level of choice provided by the variety of banks and independent lenders which include it amongst their portfolio of lending products, there are numerous reasons why companies choose invoice factoring as their preferred invoice funding solution and use Invoice Funding as their Invoice Factoring Brokers:
- Invoice funding bridges the cash flow gap between paying suppliers and getting paid
- Credit control expertise helps to reduce in-house overheads and improve collection times
- More flexible than overdrafts and bank loans, as funding grows in line with sales ledger
- Credit protection can safeguard against debtor insolvency
- Improved cash position can help you secure supplier discounts
Is Invoice Finance Right For My Business?
If your business offers customers credit terms, you can run into trouble even when profitable. Late payments are a significant challenge for SMEs in the B2B sector, and if it becomes a regular occurrence, you’ll be left staring at a cash flow problem sooner rather than later. If your company does not have a strong credit rating or my be a new start, you may find finding and accessing traditional forms of financing such as bank loans difficult, invoice financing can offer a feasible alternative.
Invoice finance basically speed up access to funds and incoming cash flow, as receiving payment for invoices can sometimes be a lengthy process. This is perfect for cash hungry businesses that are at a growth stage or have a large drain on cash reserves say weekly wages bills that need to be met.
How brokers spend up the process ?
As a first step, a good factoring broker will gather information about a business including its size, turnover, and its client profile to help find the best fit. This information gathering is typically done online, over the phone or even face to face if they happen to be situated in the area.
Once the factoring brokers have received all the information they need they will set about referring customers to lenders which are best suited to fulfil their requirements and generate quotes.
When the factors quotes are received it’s the role of invoice factoring brokers to discuss and explain which particular lenders would be the ones most suitable to help. The broker’s knowledge of the market and the individual lenders’ strengths and weaknesses put them in the perfect position to achieve this. As factoring brokers we understand that one size does not fit all, some smaller businesses like the personal touch. We would suggest if your turnover is under £150,000 you would use a small factoring firm like Regency PLC.
There are a number of other benefits which an invoice factoring broker offers which make them the ideal way to find a lender as they understand the market.
Broker Commission – How we get paid
As a leading UK 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 our services Nothing! We will 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.
Independent Factoring Brokers
Independent Factoring brokers will have invested significant time in getting to know the best invoice factoring companies in the market, and will know which firms are reputable, and which are not. Invoice finance companies will also know which Funders are most appropriate for different types of client. Some clients for instance may like high street mainstreem banks like Barclays Invoice Finance. Others may require specialise funders in particular industries like printing. As we are independent brokers we can ensure you get the best factoring deal. We are not tide to any lender, the foundered will pay us a commission but we do not charge you a fee for our services.
What is a factoring broker?
Factoring brokers can take the hard work out of finding the best Invoice Finance deal that is right for your business. Essentially they look at your lending requirements and match you to the right Factoring or discounting product and lender. The issue is that the invoice finance space has become a very crowded marketplace, which is great news for small business owners and SME's, but inevitably more choices can lead to more confusion.
What is the costs for your services?
As invoice finance brokers we do not charge for our services, the lender will pay us a commission for introducing your business to them.
Why use an invoice factoring broker?
Our consultants are experts in the different invoice finance products available and know the market inside out. We have a panel of hand-picked funders from across the UK including many industry specialists You’ll speak to the same independent consultant throughout your business finance journey. It’s our mission to fully understand the needs of your business so that you find the finance you deserve. We’ll let you know exactly who’ll be in touch from whichever funder you’re matched with so you know what to expect.
Get The Best Deals
Factoring brokers also negotiate preferential rates and discounts from lenders for business they introduce. This is due to the large amount of invoice finance enquires we pass to the Factor’s. Not only should you be getting the best deal available, but that deal will be made more competitive by using a broker as they can negotiate and secured favourable rates than if you had gone direct.
Would you like to know more about Invoice Finance. Learn more about the benefits of using us as your Invoice Factoring Brokers and how we can help you and your business? simple complete the inline enquiry form and a funding specialist will contact you.