Choosing an invoice financing company

Assuming you are amongst the majority of UK small to medium sized business owner/managers who are wanting to protect their working capital and avoid cash flow problems, but you are not relatives of banking CEO’s then you will be wanting to find a suitable replacement for an overdraft?

Being turned away by the banks for sky high overdraft rates and unfeasible demands for excess security is seemingly becoming the norm now. If you don’t want, nor cant get in any case, an overdraft facility that can be called in on demand then there is an alternative. Invoice Finance.

But when the decision in made to go down the route of accounts receivable finance / invoice finance and you are on the look out for products such as invoice discounting and invoice factoring, how do you go about choosing a) the right business finance provider and b) the right solution for your needs?

The answer is simple, let us do it for you!

Factoring Finance have been sourcing the right solutions from the right finance providers for over 30 years. We have an extensive UK wide broker network, and because we are independent, we are not tied to any one, or any number of providers. This means that we find the solution that is right for you, and not the invoice finance provider.

The small business finance industry has always been robust as invoice finance works on so many levels.
It can unlock tied up cash in your unpaid customer invoices to better your cash flow position by effectively reducing your customer invoice terms from 30 or 60 days down to 24 hours. It can mean the difference between cashing in on seasonal demand, and missing out, and it can also release otherwise tied up cash flow that can put injected back into the business for growth.

With the banks removing themselves from the small business finance market and some even venturing into invoice finance themselves, the market has grown and so has the level of choice which we can focus on and hone to your individual needs.
Even if you know which invoice finance solution is best for your needs, and on what terms will suit your particular business, there is still the issue of finding the provider that can give you the best deal. With our bargaining power and broker network we have been able to source terms and rates that could not be found alone and our fees are payable by the finance provider so you don’t need to worry.

Notwithstanding this, there are many factors that should also be taken into account when choosing a small business finance provider. For starters, there is a vast between invoice discounting companies and invoice factoring companies. One finance company may be brilliant at factoring but this doesn’t always guarantee they are good at invoice discounting and visa versa.
With invoice factoring, the finance provider is contacting your customers to arrange payment of the outstanding invoice. This is a very delicate operation and requires a high degree of professionalism and proficiency. Be too pushy and the good will and customer service relationship between you and your customer may be at risk. Don’t be assertive enough and the invoice doesn’t get paid. It is a fine balance.

As such, with over 30 years knowing the industry inside and out, and who the good the bad and the ugly are, we use this knowledge in selecting the right deal, and the right provider for you.

For any further details feel free to browse through the site. However, we pride ourselves on our availability to our clients so if you have any questions just pick up the phone and give us a call.

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