If a factoring broker is ‘worth their salt’ they should offer you benefits over and above just randomly selecting some lenders from the yellow pages.
A good factoring broker will aim to understand your business and it’s requirement. Only when they have this understanding can they look to meet your needs by approaching the market.
They will also have an in depth understanding of invoice finance products and the invoice finance market of lenders. Different lenders have different product offerings, different pricing structures and also different underwriting criteria. By understanding both your business and the invoice finance market a good broker can help you find the most suitable type of facility for your business and the lender that is best placed to meet your needs.
In terms of costs a good broker should explain all the costs to you. It is very important to look beyond the headline rates which can be misleading. You should understand the total costs involved in operating your facility as only then can you make an informed decision.
Structure is equally important if not more so. If the facility is not structured to meet the unique requirements of your business then it may not do what it is set up to do. If the facility does not meet your needs it can cause frustration at best but can also cause more serious issues. A reputable broker who has understood your business and your requirement will ensure that the facility is structured to meet your needs.
I am a firm believer that only a business owner can decide what is best for their business. As such a good invoice finance broker should be aiming to explain what a clients options are. They should explain the benefits of each facility, the associated costs and also the responsibilities of the business owners or directors. Then a business can make an informed decision.
At Smart Factoring Quotes our aim is to support businesses in setting up facilities that genuinely work for them.