You can manage the application directly with the lender if you prefer, or work with one of our unbiased experts. They will cross check your application, ensure your application has the highest possible chance of success and suggest more appropriate products where appropriate.
Working With ABC Finance Ltd
We work with the lender on your behalf, ensuring the application is completed quickly and on the best possible terms.
We don’t charge a fee for arranging invoice finance, meaning you get all the benefits of a specialist broker without any hidden fees.
Talk to an expert or apply online using our invoice finance comparison tool.
Choosing The Best Deal
There are a number of invoice finance providers out there, all with slightly different offerings. Finding the best option for your business isn’t always easy. Before signing up to a particular lender you should consider the following:-
1. Credit Control – Factoring vs Discounting
If credit control is an issue in your business, or is a hassle you could do without, you are more likely to be drawn to invoice factoring. The additional service could offer significant benefits to your business. On the other hand, if maintaining the relationship with your customer during credit control, or keeping the facility confidential is key, invoice discounting could well be right for you.
2. Total Charges – Not Just The Headline Figures
When taking their payment for funding your invoice, lenders will usually charge their fees as shown above. Understanding their fees is important and discussing them with an experienced and impartial advisor can help you understand the costs involved for your business.
3. Hidden Fees Or Terms
Not all providers will show all fees on their facility documents. Make sure you read all accompanying paperwork to ensure you understand all fees and terms. The results of a cost comparison between 2 providers can vary significantly if all fees aren’t taken into consideration.
4. Concentration Limits
A concentration limit is how much of the total facility amount is allowed to be with a certain debtor.
For example, if your concentration limit was 30%, and your facility £1,000,000, then no more than £300,000 would be lent against invoices raised to this customer. If debt with your largest customer hit £500,000, then only £300,000 would be seen as eligible debt. This would effectively reduce the prepayment level.
Concentration limits only tend to become an issue if a single customer hits 20% of total money owed to you. Some facilities will impose a strict 20% concentration limit whereas others would accept 100% of the debt with a single customer.
When looking to take on a new facility, consideration should be given to both now and what may happen in the future. By thinking ahead, issues can be avoided in the future when you may need to release the funds quickly
Get Started Straight Away
Compare invoice factoring and discounting products, apply for your online instantly and start saving money.
If you need some help in choosing the most suitable product, enquire online now or call us to talk through your requirements with one of our experts. We won’t charge you any broker fees, so why not take advantage of some free advice to make sure you get the best deal.