What to look for in an Invoice Finance provider

With a plethora of Invoice Finance providers out in the marketplace, ranging from large bank-owned machines to small, niche providers, it is crucial that business owners make the right choice of provider for their business.

Whilst the products can appear to be very similar the delivery of the service varies greatly and can be critical to the success of a business.

The importance of choosing the right partner can often be overlooked, as many businesses focus purely on price.... and this can lead to problems down the line.

Local Operations Centre

Does the Invoice Finance company have a local office where operations staff are physically based? Many have sales offices in the regions but accounts are usually managed from remote centres where the staff may not know who you are. To them and the system that they use, you are merely a client number.

It is important you know and meet your relationship team and more importantly they know you and understand your business.

If there are problems, and in any relationship there will be some from time to time, can you call in to the local office to sort out these problems? And can your Relationship Manager call in regularly to your premises to provide support if and when required?

Access to decision makers

Can you get quick decisions when they need them most?

It is always helpful if your Relationship Manager has authority to actually make decisions rather than constantly having to “refer to credit”.

Business moves fast these days and so you need to be able to deal with decision makers for those daily operational issues which need quick responses.

Win/Win Relationship

Both parties need a relationship built on mutual benefit and trust.

Both the client and the Invoice Finance company must have agreed a deal which is acceptable to both parties. If one is unhappy because they feel the negotiations have all been one sided, then it’s not a great start for an ongoing working relationship.

There needs to be transparency in what the solution actually provides and what it will cost.

Are the headline rates realistic when comparing solutions and are there any onerous terms such as extended notice periods or restrictive funding limits.

Most factoring companies use the straplines of offering flexible, tailored cashflow solutions, but how many really are?

Business owners need to be sure they are comparing like for like and understand any potential restrictions not included in the headline figures, such as credit limits or reserves etc. 

Peace of mind

  • Who is behind the factoring company?
  • Will they be there for the long term?

In order to be sure the Invoice Finance company will be there when you need them most, look into their parentage and pedigree. There have been numerous players over the years that have roared into the UK market only to leave with their tale between their legs when times get tough.

There is always the danger of putting all your eggs in one basket if you sign up with your bank. This can be a double edged sword as in many cases it can allow for increased facilities but can also lead to the bank pulling the strings.

Diversity of funding can add strength to your business preventing one provider having too much influence.

Unfortunately, the proof of the pudding is in the eating, but by then many businesses have signed up for a 12 month agreement which can cost dearly to exit early.

The key is to do your homework and make an informed decision.

Why choose Skipton Business Finance?

If your business would like to deal with a funder who looks to establish partnerships with its clients, here are some reasons why we believe Skipton Business Finance is right for you:

1) Choose a partner not a provider

It’s not so much a funding provider that is required but a funding partner who will take time to understand your business and be there when you need them most.

Here at SBF, we take pride in the fact we are part of the Skipton Building Society who has been around for over 160 years supporting local communities with its unique mutual ethos. We have remained open for business throughout the difficult years growing our business year on year.

We pride ourselves on the fact that our biggest introducer of business is our clients themselves who are happy to recommend our services.

2) Powerful solutions delivered by passionate people

At Skipton Business Finance we truly believe business is still a people game, something that our clients very much appreciate. In a world where people demand everything now and technology is at our fingertips 24 hours a day, it is nice to know clients still appreciate the human touch that we provide.

3) Clients treated as members not numbers

We make it a priority to ensure each and every client is treated as an individual. They are introduced to their own Relationship manager who will take time to understand their business and funding requirements.

In an ever-changing competitive business world, it is the ability to make decisions quickly that set businesses and individuals apart. That’s why all our Relationship managers are experienced professionals who are given the authority to make these decisions fast.

Empowering our Relationship Managers to be able to make speedy decisions without the need to constantly “refer to credit” prevents much of the frustration many companies suffer on a daily basis with their inflexible funders.

4) No nonsense underwriting

Our skilled team adopt a commercial approach to underwriting, putting the business and the people at the forefront of our decision-making process. We never use a system-style scorecard and make each and every funding decision based on the individual merits of the proposal.

5) Invoice Finance with a pulse

Our commitment to have real people on the end of the phone and not a “dial 1 for accounts” type robot reduces many of the complaints commonly found in larger organisations.

We do not believe in overseas call centres or automated telephone systems and, with our regional client hubs at the centre of the local business communities, our clients can be sure of fast, no-nonsense responses from real people who take the time to understand their business.

We believe working closely with our clients ensures great service and future success. After all, if our clients are successful then so are we.

Contact us today & get a FREE quote!

If you would like a no-obligation FREE quote, please get in touch by ringing us on 0800 0854150 (call 0330 1232437 if ringing from a mobile).

You can also email us at info@skiptonbf.co.uk.        

Or why submit an online enquiry using the form on the right and we'll call you back.