• The Price Of Delaying Moving Invoice Finance Companies

    How you can pay a lot if you delay moving invoice finance companies.A recent example of a cost saving that we have found for an invoice finance client, demonstrated just how great the cost can be of delaying moving between invoice finance companies. This particular client is currently paying a lot in fees, so the savings are great. However, even average users of receivables finance may be missing out on savings, if they delay moving providers. Every month that they hesitate could be costing them in additional fees paid.

    SEE WHAT YOU COULD SAVE

    Savings On Typical Invoice Finance Costs

    If you were to take a typical and factoring deal that we come across, that might be paying circa £10K per annum in fees (not that significantly cheaper facilities may be available). This is the combination of service charge and discount charge (see our guide to factoring and discounting charges for more details).

    Our prior track records suggest that we cancel expect to find them savings of approximately 34% on prices quoted elsewhere*. That would equate to a saving of c. £3,400 per annum. At that level, every month that goes by without moving to the new funder, would be costing the company over £283 per month - a lot of money.

    The Cost Of Delaying Moving Invoice Finance Companies

    Where those potential cost savings become even more dramatic, is in situations where a factoring user is paying significantly higher charges. We have had examples where we have been able to find savings on fees of several thousand pounds per month for customers.

    In such situations, if they delay moving funders, it will be costing them several thousand pounds in additional fees that they didn't need to pay, for each month that they delay. Often the reasons for delaying moving providers comes down to the pressures of being busy with other matters. However, when significant cost savings are on the table, the price of that procrastination can be significant, as demonstrated above.

    If you are contemplating moving providers, to save money, or for any other reason - please see our free guide: Help Moving Invoice Finance Companies.


    Note: *Average savings were updated October 2019 to 31%.

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bibby
positivecashflow
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