When you have gone through the process of arranging an invoice finance facility, the temptation can sometimes be to just leave it as it is. There are, however, many good reasons, for keeping the facility and your provider under constant review. Here are our top 5:
1. Reduce costs
Many invoice finance users are paying too much for their facility. This may be because their turnover has increased, the facility was set up at a time when prices were high or perhaps the risk profile of the business was higher than it is now.
Many businesses also focus on headline rates when setting up a facility and only understand the true cost of additional fees or disbursements once the facility is up and running.
2. Increase cash generation
A lot of invoice finance users are not benefiting from the full amount of cash that they could be. Their prepayment may be too low, the facility limit may be too low or there may be restrictions such as concentration caps on the facility. The good news is that this can be improved.
3. Poor service levels from your lender
We speak to a lot of businesses that are receiving poor service levels from their existing invoice finance provider. Given that you are paying good money for a service this should not be tolerated. There are plenty of lenders that provide good service levels at a fair price.
4. Existing lender cannot support your business
Some lenders can only fund businesses up to a certain level or fund certain types of businesses. If your business has outgrown your existing lender or has taken a change of direction that the existing lender cannot support, it is time to find a new finance partner.
5. Additional facilities required
It may be that you require additional borrowing to finance your growth. If your existing facility is a stand-alone invoice finance facility you may wish to consider a stock finance or a trade finance facility. Beyond a stand-alone invoice finance facility are a variety of solutions to meet your cash flow requirements.
There are a lot of alternative finance companies out there that do the same as we do. They share the whatand how. Our clients and partners work with us for our whyand our who.We’re dedicated and focused on our clients.
To discuss the funding options available to your business. Please do not hesitate to contact us on 0161 280 4220 or email@example.com
what is invoice finance? invoice finance for recruitment, invoice finance for dummies, invoice finance for new business, invoice finance for startups, invoice finance with recourse, invoice finance meaning, invoice finance for small business, factoring example, invoice finance, invoice finance, invoice finance UK, how many businesses use invoice finance, why use invoice finance, why invoice finance, what is invoice finance, invoice finance and factoring, invoice finance and asset based lending, invoice finance agreement, invoice finance advantages, invoice finance arrangement, invoice finance alternative funding, invoice finance for new business, invoice finance blog, invoice finance bad credit, invoice finance benefits, invoice finance case study, invoice debtor finance, export invoice finance, easy invoice finance limited, invoice finance facts, invoice finance flowchart, invoice finance companies manchester