Invoice finance facilities can be fairly complex when you look at how they calculate the cash generated and also the costs involved.
In short the headline rates do not give the full picture. Invoice finance can be costly and typically you are signing up for a 12 month agreement. If you sign up for the wrong facility it can prove to be an expensive mistake.
A competent factoring broker should be able to do the following:
- understand your business
- understand your requirement
- explain what your options are and rough costs
- help you negotiate with suitable lenders
- explain your options in full including costs, cash generation, potential retentions and responsibilities
- from there you should be allowed to make an informed decision. Certainly at Smart Factoring Quotes we do not believe in the ‘hard sell’
The involvement of factoring broker should ensure that you end up with a facility that works for your business. It should also save you time and money.