Once 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 however a number of good reasons for sticking with your current provider and keeping the facility in place. How ever there are also a number of reasons why someone would change invoice finance providers.
Why change an invoice finance provider?
There are a number of reasons why businesses change their invoice finance provider. Here are our top 5 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.
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