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• 14 Jun

  Invoice Finance Brokers UK, Why Use A Broker

  Invoice finance brokers help businesses find and compare suitable invoice finance providers rather than approaching individual funders one at a time. A specialist broker should understand the different products, costs, funding levels and criteria offered across the market and use that knowledge to identify providers that fit your particular requirements.

  FundInvoice is an independent UK invoice finance broker. We compare providers and obtain quotes for businesses across the UK, and there is no direct charge to clients for using our quote search service. We are based in St. Leonards-on-Sea, near Hastings in East Sussex, and handle the whole of the UK from there. We can introduce you to funders with local offices if needed.

  What Does An Invoice Finance Broker Do?

  An invoice finance broker acts as an intermediary between a business looking for funding and invoice finance companies that may be able to provide it. Rather than simply passing an enquiry to a lender, an experienced broker can help determine the right type of facility before identifying suitable providers.

  This can be particularly useful because invoice finance is not a single product. Options include factoring, invoice discounting, confidential facilities and selective invoice finance. Providers can also differ considerably in their eligibility criteria, pricing and the sectors they will support.

  Why Use An Invoice Finance Broker?

  There are around a hundred different invoice funders servicing the UK market on our list of invoice finance companies. Understanding which providers offer a particular type of facility, and which are likely to be interested in a particular business, can therefore be difficult for someone approaching the market for the first time.

  An invoice finance broker can help you:

  • Identify the type of invoice finance that best fits your requirements.
  • Find providers whose criteria match your business and sector.
  • Compare quotes, charges and funding levels.
  • Understand differences between apparently similar facilities.
  • Avoid spending time approaching providers that are unlikely to be suitable.
  • Negotiate and discuss the terms offered by prospective funders.

  Invoice Finance Broker Or Going Direct?

  You can approach an invoice finance company directly, and in some circumstances you may already know exactly which provider and product you want. However, approaching one provider only tells you what that particular company can offer.

  Using a broker gives you the opportunity to consider alternatives. This can matter because providers may differ in their appetite for particular sectors, minimum turnover requirements, advance percentages, contract terms and pricing.

  FundInvoice does not charge prospective clients directly for using our invoice finance quote search service. If a client proceeds with a facility, the finance provider pays us a commission.

  An Example Of Why The Choice Of Provider Matters

  We recently dealt with a business that initially approached one particular funder directly. The company wanted single invoice finance, where individual invoices can be selected for funding.

  However, the provider they approached offered selective debtor finance instead. This allows particular debtors to be selected, but all invoices relating to those selected debtors are submitted. The two facilities sound similar but work differently.

  Because the client also contacted our broker service, we were able to discuss what they actually needed and introduce them to a selective invoice finance company offering the type of facility they were looking for.

  Without that assistance, they could have spent considerable time approaching providers individually before finding one offering the right product.

  Can An Invoice Finance Broker Help You Get A Better Price?

  Price is another reason to compare providers rather than selecting one at random. Invoice finance costs can include different service charges, discount rates and other fees, so the cheapest-looking headline rate does not necessarily produce the lowest overall cost.

  FundInvoice has conducted extensive research into invoice finance pricing and uses that information when helping clients compare quotations. If you already have quotes, we can also help you compare the overall costs and terms being offered.

  How To Choose An Invoice Finance Broker

  When choosing between invoice finance brokers, consider their experience of the sector, the range of providers they can access, whether they understand different types of invoice finance and how they are paid.

  It is also worth asking whether the broker will simply make an introduction or will help you compare the different options and quotations available.

  Invoice Finance Broker FAQs

  What is an invoice finance broker?

  An invoice finance broker helps businesses identify suitable invoice finance providers and facilities. A broker can assess what the business needs, approach appropriate funders and help compare the quotes and terms offered.

  How much does an invoice finance broker cost?

  FundInvoice does not charge prospective clients directly for using our invoice finance quote search service. If a client takes out a facility, we normally receive commission from the finance provider.

  Is it better to use an invoice finance broker or go direct?

  Going directly to a provider can make sense if you already know exactly which company and facility you want. Using a broker can be useful if you want to compare different providers, products, costs and terms before deciding which option suits your business.

  Can an invoice finance broker compare different providers?

  Yes. An experienced broker can approach suitable invoice finance companies and help you compare their quotations, funding levels, charges, terms and eligibility criteria. It is worth checking whether a broker is independent, as some may work with only one or a limited number of providers. FundInvoice is completely independent and works with a wide range of UK providers.

  Speak To An Invoice Finance Broker

  If you would like help finding and comparing invoice finance providers, FundInvoice can search for suitable options and obtain quotations on your behalf. Our service covers businesses throughout the UK, and there is no direct charge to you for using our quote search service.

  Call us on 03330 113622 or request an invoice finance quote search through the website.

  By Glenn Blackman