- 14 Jul
Cheap Factoring And Cheap Invoice Discounting
Cheap factoring and cheap invoice discounting are often what prospective clients think they want.
We often initially speak to clients that say they are seeking selective factoring or spot factoring, and we can find that for them, but once you get into the details it often emerges that they asked for that as they believed it was is going to be the cheapest option, rather than because they really only need short term funding or to fund a single order or period of time (all legitimate reasons to use spot factoring or selective invoice discounting).
If a client wants as much funding as possible, for as long as they can keep it, whole turnover factoring and whole turnover invoice discounting are often the best options for them as there is normally a pricing benefit in factoring all your invoices, a kind of bulk discount if you like.
There is another popular mis-perception about "whole turnover", that it is not possible to exclude certain invoices or debtors and hence avoid paying the factoring charges on them. That is very unlikely to be an issue. Most factoring companies will happily exclude debtors or certain invoices or even certain types of sales if the client wishes. Once again the driving force for the client is often raising as much money as possible rather than excluding invoices or debtors, but it is possible.
The other issue with seeking the cheapest possible factoring or invoice discounting is the service you will receive. Clients often don't consider how close the relationship between invoice finance company and their clients can be. When it comes to day to day issues such as advising the factor that disputes are resolved or the credit control service that is part of factoring, cheap can sometimes mean low quality, being treated like a number and clients rarely want that. There are good quality services that are also good value but companies seeking invoice finance often come to us to help them find the high quality service providers after having used factoring and regretted their original decision to buy purely on price.
If you want the cheapest factoring deal or the cheapest invoice discounting quote we can find that for you, but spare a thought for the quality of what you are buying. We have surveyed the clients of all the leading factoring and invoice discounting companies so we know where clients are most satisfied.