- 30 Sep
Which Is The Best Factoring Company?
Which is the best factoring company?
We get asked that question a lot - surely it's a simple answer?
The Best Factoring Company
It sounds like a really simple question, but the answer is a lot more complicated than just stating a single factoring company name, that stands out as being a "head and shoulders" above all the others - and there are currently over a hundred different UK based providers to choose from.
This short video seeks to answer the question as best we can:
As the video says, the concept of the best depends upon the metrics by which you want to measure them, and they type and size of business that wants the factoring service. Not all funders will be able (or willing) to help all prospects. Some deal with startups, others don't, some take on companies in CVA, others decline them - some deal with construction sector companies whilst others will not. The first issue is finding the list of factors that are able to help companies in your circumstances, sector and of your size.
The Issues With Online Comparisons & Awards
A while back I wrote a piece looking for the best invoice finance company via an online search, the issues set out in that article are very similar to those pertaining to funding the best factor. One of the biggest problems is that you will find many lists online - purporting to list the best factors, however the metrics behind the list may not stand up to any scrutiny whatsoever - it could just be those that are on their panel.
You could use awards as a benchmark, I published another piece which reported on the Best Factoring & Invoice Discounting company, according to one set of awards that are highly coveted within our sector. Again though, the metrics behind selection are unlikely to be identical to those you might use to determine the best fit for you.
Using Price To Determine The Best?
If you resort to just comparing providers based on price, you miss out the importance of service differences, but our factoring pricing research does show dramatic swings between the cheapest and most expensive factoring quotes. We are able to use our price research results in order to help guide our clients to the cheapest available offerings. We also have research regarding the quality of their service offerings.
If you need help please speak to us in confidence on 03330 113622, and we will narrow the selection down to those that are likely to be best for your company, based on our research and expertise with the factoring sector.