- 02 Feb
How Many Factoring Quotes Is Enough?
How Many Factoring Quotes?
It's a difficult question to answer but here are my thoughts as a factoring broker.
Getting Competitive Quotations
If you are going to use a factoring company you want to ensure that you are quoted a competitive, reasonable if not low price but at the same time you need to consider the quality of what you will be receiving in service terms. All factoring services are not equal and in some cases you may benefit from paying slightly more in order to get the a higher quality of service - hence it is not just a case of choosing the cheapest factoring company.
Three, More, Or Less Factoring Quotes?
So in order to ensure that you are being quoted a competitive price you really need to undertake some comparison, or use a factoring broker to undertake that comparison for you. A factoring broker can search the market for you and give you the best factoring price that they can find but the real benefit of using a broker is their knowledge of the various factoring companies and their ability to match your needs to the most appropriate factoring company and factoring quote.
Having said that, many clients that use our factoring brokerage, FundInvoice LLP, often request a certain number of quotes. We tend to be client led on this - if the client wants the best quote we can find we deliver one quote, if they want 3 quotes we deliver the top 3 quotes that we can find. In all cases we try to match the client's needs to our knowledge of what particular factoring companies deliver in terms of service, funding and pricing.
Some brokers say they only get the best quote, but unless you have something to bench mark that against, you can never be sure that it is the best.
Ensuring A Fair Deal
There isn't a right answer to the question, we are always guided by what our clients want. We would prefer the client to be lead by our experience and judgement about the single factoring company that is best suited to their needs. We also have access to offers and discounts that clients may not know about or be able to access directly. However, inevitably clients often ask for specific numbers of quotes - often 3 as they want to check that they are getting a fair deal so we will continue to be led by our client and we will continue to match their needs to the most appropriate factoring company or companies.