Switching between invoice finance providers

Switching between invoice finance providers is now a simple process thanks to the Inter-Member Transfer Process (IMTP).

This process is a UK Finance initiative that outlines an agreed procedure that is followed by member partners.

It is designed to facilitate a simple invoice finance switching process and smooth transfer between invoice finance providers.

In this guide, we’ll break down how the process works, whether there are any risks involved in switching and how you can find out whether you currently have the best deal for your business.

What is invoice finance?

Invoice finance is a type of business finance that is designed to improve the business cash flow of companies that operate on delayed payment terms.

It allows you to get paid up to 95% of your invoice amounts as they’re raised, without having to wait for the due date. It is designed for businesses that accept delayed payment terms of 30 days to 90 days.

Invoice financing can be broken down into 2 main product types, invoice factoring and invoice discounting. Both are funded as ongoing facilities over the longer term.

Selective invoice finance can be used to finance a single, or a few invoices as and when needed.

Is switching invoice finance provider hard?

No, thanks to the Inter-Member Transfer Process, the process of switching provider is straightforward and almost entirely managed for you.

The following commitments apply to any transfer under the IMTP:

1. The Incoming and Outgoing Members will work together in the best interests of the client.
2. Throughout the pre-transfer and post-transfer process Members will always communicate with the client to ensure a smooth transfer.
3. The outgoing Member will provide timely visibility of all cash items relating to a client for a period of three months from the date of transfer.
4. Should a client believe that an IF/ABL Member has failed to deliver on these commitments, the Member will be accountable under the UK Finance IF/ABL complaints process.

Is switching provider risky?

No, switching provider is not a risky process as long as everything is well-managed.

At ABC Finance, we work with both providers where needed to ensure a smooth transition with no risk of interruption to your business operations.

It’s important to only work with experienced professionals when handling a switch, to ensure you always have the support in place to ensure you’re not placed at risk.

Keep reading: Using invoice finance to grow your business or Invoice finance for phoenix businesses.

Can ABC Finance manage the switching process for me?

Yes, our team of experienced commercial finance experts are on hand to manage the entire switching process for you.

If you need support, or even simply want it to be there should you need it, we can help.

We can manage the process from start to finish and even stay in touch should you need our help post completion.

How can I find the best invoice finance products for my business?

In the UK, the easiest way to find the best invoice finance products for your business is through the ABC Finance invoice finance comparison tool.

Our tool allows you to retain full control of the process without the need for endless sales calls.

To get started, simply input your business details and requirements. Within minutes, the leading lenders in the market will start to compete for your business, offering you their best terms.

The lenders are not passed your contact details and have no consent to call you, leaving you in control.

Once you receive an offer that you’re happy with, you can progress your application in a single mouse click. At this point, your contact details are shared with only your chosen funder.

Of course, if you need further support, our team of experts are on hand to talk you through the offers, help you to find the best one and even negotiate with lenders where needed.