- 16 Mar
50% Cost Saving For Invoice Finance Client
We have just completed a quotation search for invoice finance for one client and found them a 50% cost saving on their existing fees! Not bad for a free service!
A regular issue that we are finding with prospective clients at the moment is that they are paying discount charge over a minimum bank base rate rather than at actual base rate. Whilst base rate is currently only 0.5% some prospects are subject to minimums of 4.5% to 5.5% which on £100,000 of funds in use equates to £4,000 to £5,000 more cost each year than if they were being funded over actual bank base rate. Fortunately there are some invoice finance companies out there that will fund over actual bank base rate or even enforce a much lower minimum base rate e.g. 1% which can equate to a significant cost saving each year for our clients.