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• 20 Sep

  How Many Invoice Finance Quotes Do You Need

  Following an enquiry from a prospective client we found out that they were looking for invoice finance quotes and, as is sometimes the case, they told us they hadn't been speaking to anyone else. However, once we started searching the market for them, it became apparent that they had used at least 2 other brokers already - each of whom would have contacted numerous funders. One of our funding partners had received the same lead in 2 of their geographically separate offices, from two other invoice finance brokers!

  How Many Invoice Finance Quotes Do You Need?

  This is something that we see occasionally, it seems like some clients feel that they will get a worse quote if they tell us about what they have received already. That is not the case. If a customer says to us that a receivables finance company have quoted a given fee, we will seek to beat that fee. We will seek to beat it by a desired margin, or percentage if the client wishes.

  The complication of using several brokers, beyond the repeated introduction of the same prospect to the same funders over, and over again, is that the client can be inundated with numerous quotes, making the decision-making harder. It is difficult enough to compare quotes at the best of times, but the process can be daunting if you are dealing with numerous providers, and you don't understand the nuances of how they construct their prices.

  Invoice Finance Brokers

  If you are using a broker who has access to the UK market, you only really need that one broker, and it is best to go via the broker for your quotes - often, as in our case, they may have access to special deals and rates that may not be available if you contact the provider direct.

  Of course, there are brokers and other third-party introducers - such as some accountants, that only deal with a small number of providers. Therefore, if you choose the wrong intermediary you could limit your choices. Our approach is to undertake market research regarding both pricing and service quality so that we can give the best guidance to our clients. You also need to be aware of any costs of using a broker.

  So, how many invoice finance quotes do you need? Some people will say just the best pricing or perhaps the only party prepared to fund a difficult situation. Generally, clients seem to want to compare the best 3 quotes. We are driven by what our client wants, assuming that enough parties are willing to quote!

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  Related article: "How Many Factoring Quotes Should You Get?"

  By Glenn Blackman