As specialist invoice finance brokers, we’re experts in negotiating the best factoring rates for our clients. We’ve pulled together some of our top tips on how to get the most out of your existing invoice finance facility, as well as guidance on how to present your business as an ideal candidate to prospective funders.
To maximise the benefits of invoice finance, it’s important to know when to review your existing facility.
Why should you complete an invoice finance review?
Why should you review your invoice finance facility?
How invoice finance reviews save our clients money – case studies
1. A logistics startup with £280,000 turnover
Previously paying: £10,640 per year
Now paying: £4,200 per year
Compare Factoring cost saving: £6,440pa (60.53%)
This client was paying a fixed percentage fee on the value of their invoices. As a startup, they didn’t have a huge selection of lenders to choose from.
With more trading history under their belt, we were able to identify far more options that had now become available. After our review, the existing funder did try to reduce their fees, but they were unable to match what we could secure elsewhere.
The new funder also offered the startup a 6-month trial period, giving them further confidence to switch providers.
2. A healthcare recruitment company with £2 million turnover
Previously paying: £53,000 per year
Now paying: £25,000 per year
Compare Factoring cost saving: £28,000 pa (52.83%)
We completed a factoring facility review for this recruitment business, and within the same day we had two offers available amounting to a £17k or £28k cost saving for a like-for-like product.
The business had started using factoring as a startup with a projected annual turnover of £300,000. Following a period of intense growth, the factoring facility had not been reviewed, meaning they were paying excessive rates.
As well as achieving a substantial cost saving, we were also able to secure more upfront cash for our client, as their advance rate with the new funder was increased from 85% to 90%.
Concerned that your existing factoring facility might be costing you too much? Arrange a review with one of our invoice finance experts, and we’ll make sure you’re on the right track.
Companies of all shapes, sizes and sectors stand to benefit from invoice factoring. Funding providers are more interested in looking forwards (i.e., at the strength of your work pipeline), and less so at your time in business, credit history, and so on. Factoring can mitigate the risks associated with seasonality, or provide a much-needed injection of working capital to finance new projects, team expansion, or product/service development.
To make sure you’re a prime candidate for invoice factoring before you apply, think about the following 6 questions:
If any of the above apply to your business, it is likely that invoice factoring can help.
It’s also worth ensuring you know the full facts of what’s involved in the factoring process. You can read our step-by-step guide here.
As a specialist invoice finance broker, we understand the value that factoring can add to all kinds of business. We’re independent, so our advice is 100% impartial. Better still, it’s 100% free.
Invoice Finance is a perfect way to help your business manage cashflow and to remove the headache of late payers. There are a number of ways that an invoice finance facility can be structured and it can be tailored to your preferences.
Why not try our “help me choose tool” to allow us to support you in making the right decision for your business in 4 easy steps?
