- 07 Aug
The Little Known Benefits Of Using An Invoice Finance Broker.
There are some benefits of using an invoice finance broker that SMEs may not fully appreciate. I thought it might be helpful to outline them in a short post.
A good invoice finance broker's knowledge of the market will be far more in-depth than any comparison site, or the knowledge that you could gain by searching the Internet yourself.
For example, whilst certain aspects of the risk criteria of particular providers may be published on their websites, there will be a particular nuances which are not.
These subtle differences between providers could include things such as who is prepared to deal with a company that is in a CVA? Who is prepared to accept a customer that has previously breached an invoice finance facility with another provider? This type of differentiation between different offerings is not available from a comparison site, and you are unlikely to be able to glean that information by trawling through the web.
Saving You Time
A good broker will know the most appropriate people to introduce you to. This will have a number of benefits. Firstly, it means that you are dealing with the individuals that are most likely to be able to offer what you are seeking. Secondly, a good invoice finance or factoring broker will deal with the best sales contacts that are available - the people that can get customers what they need, at the best rates. This means that you will be dealing with the top performers, that are most easily able to get you what you need. This can save you a great deal of time searching around the Internet to find providers, and attending time wasting meetings, only to find out that particular provider cannot help. This can prove to be the case even when initial indications are that they can help.
We have seen numerous examples of customers wasting their time trying to find what they need directly. This is one such example where the customer misunderstood what the invoice finance company could offer.
On average we have been able to save our clients 31% on the invoice finance prices that I have been quoted elsewhere. An invoice finance broker we'll keep in contact with the providers around the market, so that they are aware of the latest pricing advantages that are available to customers. This could include recent offers or discounts.
In addition, it is sometimes the case that due to the volume of deals transacted, an invoice finance broker will be able to secure better rates for their clients than clients may be able to secure directly with the provider.
Some clients fear that using a broker could lead to their commission "bumping up the rights", that is often not the case. Firstly, many providers will not adjust their price according to the introductory channel, or they discount their rates to secure the business in a competitive situation. Secondly, there are so many providers now available (105 at last count) that there are plenty of options. We have only been able to deliver those cost savings by knowing who offers the best rates within the market.
When you deal with a broker service such as ours, we take care of all the work for you. You avoid needing to dig around looking for more obscure financiers as we have already done that work. We have carried out extensive pricing comparisons, so that we can introduce you to the very best providers immediately. You will also have the benefit of an independent expert to discuss your options with, and to turn to for support.