What Stops Invoice Finance Users Moving Providers?
Barriers To Moving Invoice Finance Companies
We wanted to understand if existing invoice finance users felt that there were any barriers that prevented them from moving to alternative invoice finance companies. Therefore, we asked a sample of existing invoice finance users, from across a spectrum of different invoice finance providers: "Do you have any concerns that stop you moving invoice finance providers?".
Most Don't Perceive Barriers To Changing Providers
The responses were as follow:
- 80% - No
- 20% - Yes
Barriers To Changing Invoice Finance Companies
When we questioned the 20% with concerns further, these were the concerns that they highlighted (shown as a percentage of the total responses given - note that some may have given multiple answers to this question):
- 46% - Paperwork / hassle involved
- 30% - The time required to move
- 17% - Being tied into a contract
- 2% - Cost of moving providers
- 2% - Potential upset to customers
- 2% - Potential upset to our cash flow
Conclusions - Workload The Biggest Barrier
So it can be seen that in the majority of cases it is convern over paperwork, hassle and time that cause the biggest barrier to moving providers. These answers, which could be collectively called workload, accounted for 76% of the concerns raised.
Behind that, 17% of the concerns were over the fact that they were tied into an existing contract. A notably lower proportion of the responses that illustrates that the expectation of difficulties moving providers is the biggest barrier to changing invoice finance companies. However, overall, the majority (80%) apparently don't have any concerns that would stop them changing invoice finance companies.
These perceived barriers are often not the case in actual fact. There are a number of provisions in place to make moving between providers a simple as possible: Help with changing invoice finance companies.
Source: FundInvoice IF & Crowdfunding Advertising and Promotion Survey - January 2016 (100 respondents, all existing invoice finance users of a variety of different invoice finance companies - note some respondents may have given multiple responses to parts of this question). Note that rounding causes the total to be less than 100%.