Reasons To Change Invoice Finance Providers

Reasons To Change Invoice Finance ProvidersOnce a business has an invoice finance facility in place, and all issues of setting up the facility are behind you, the temptation is just leave the facility as it is and in place.

There are a number of good reasons to change invoice finance providers. Perhaps you’re not happy with the level of service you’re receiving, or you feel like you’re not getting the best deal possible.

Maybe you’ve outgrown your current provider and need a more comprehensive solution. Whatever the reason, it’s important to do your research before making a switch.

One of the most important factors to consider is cost. Make sure to get quotes from several different providers so that you can compare prices. You’ll also want to look at the fees charged for early repayment, as well as any other hidden costs that may be lurking in the fine print.

It’s also important to consider the level of customer service you’ll receive from a new provider. Do they have a good reputation? Are they easy to get in touch with when you need them? Will they go above and beyond to help you with any problems that arise?

Finally, make sure to consider your long-term needs when choosing a new invoice finance provider. If you think you may need more advanced features down the road, make sure that the provider you choose offers them. Otherwise, you may end up having to switch providers again in the future.

Why change an invoice finance provider?

When it comes to business, cash flow is key. Invoice finance can provide a much-needed injection of cash, giving businesses the resources they need to grow and thrive. However, invoice finance providers are not all created equal. So, if you’re thinking about changing providers, what should you look for?

First and foremost, you’ll want to find a provider that offers competitive rates. After all, the whole point of invoice finance is to save money, so there’s no point in paying more than you have to.

You’ll also want to consider the terms offered by different providers. Some may offer longer terms, which could give you more breathing room when it comes to repayment. Others may offer more flexible repayment options, which could be helpful if your cash flow is unpredictable.

Ultimately, the right provider for you will depend on your specific needs and preferences. But by doing your research and shopping around, you’re sure to find the perfect fit for your business.

There are a number of reasons why businesses change their invoice finance provider. Here are our top 6 reasons for 2022.

1. Reduce costs

There are a number of invoice finance users that are currently paying too much for their facility. There are a number of reasons as to why, it could be that their turnover has increased. The facility was set up at a time when prices were high or simply the business has matured along with its customers and it is now seen as less of a risk.

Directors many focus on the overall rate that is offered in a quotation when setting up a facility. True understand of cost including additional fees or disbursements only comes to light once the facility is up and running.

By undertaking a full market review of costs this can certainly be reduced. This will greatly add profit to the businesses working capital.

2. Increase cash generation

Invoice finance users are not benefiting from the full amount of cash that they draw down from. Prepayment limited may be too low against a customer, the overall facility limit may be too low or there may be concentration restrictions placed on the facility.

This can be improved, working with clients to maximise cash generation. We will assist you to ensure that limits and prepayment percentages are maximise, as well as helping to remove any  restrictions on a facility.

3. Lender offering poor service levels

Poor service levels from a lender should not be tolerated after all you are the customer. Luckily we have noticed most lenders in 2022 are investing heavily in customer services and after care departments.

If you are suffering from poor service levels from your current provider this is easy addresses, give us a call we work with over 90 lenders. We are sure we can match one to your expectations.

4. Current lender cannot support your business

Lenders often change direction, sometimes they are unable to support your business. If you have a facility and your current invoice finance lender has issue a termination notice on you, don’t panic. You may have outgrown your existing lender or the business could have taken a change of direction, so your existing lender cannot support. Now is a great time to find a new finance partner.

Should you find your business in this situation then we can assist you by finding a more suitable funding partner.

5. Additional facilities are required

An additional borrowing requirement to finance your growth maybe needed. You may only be using a stand-alone invoice finance facility, but require more capital you could look at a stock finance or a trade finance facility.

We can work with you to look at different ways to raise working capital to top up a finance facility.

6. Breach of facility with lender

If you breach for facility with a lender, they may decline to offer you a facility, this is known as managing away. You will then have a few options, repay the outstanding amounts to your current lender in full, let the lender carry out a collect out or find a new lender that will pay the outstanding amounts in full and offer you a new facility.

Switching providers has never been so simple

If you are worried about making the switch or need help due to one of the reasons above, moving invoice finance providers is now far simpler than it once was. Working with our clients to ensure the best possible out come on your behalf.

We will manage the whole process and liaise with the lender to carryout the transfer for you, this will minimising the input needed from yourself.

A free review of your facility is offered and all we ask is that you forward us details of your existing agreement, and your current invoice position.

We will then compare lenders quotes and terms from across the market. This allows us to identify any potential improvements over your current facility.

Once you are happy with the improved terms, we will fully manage the application through for you. Simply make contact via the online form and we will call you back

Business Finance specialist at Invoice funding | + posts

Seasoned professional with a strong passion for the world of business finance. With over twenty years of dedicated experience in the field, my journey into the world of business finance began with a relentless curiosity for understanding the intricate workings of financial systems.

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