Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 13 May

  36 Percent Saving On Factoring Costing

  

  Factoring costing varies between different service providers, this is an example of a recent case where we were able to find one customer a substantial saving on the price that they were paying. The company was turning over several million pounds each year, and they wanted to save some money on their annual expenditure. Therefore, they contacted us after receiving our monthly FundingVoice magazine.

  36% Saving On Factoring Costing

  This particular client was already using a bank for their receivables financing. They operate within the temporary recruitment sector, where it is common to find companies using invoice finance. Our research suggests that within the recruitment sector, the uptake of this type of funding may be 20 times higher than the national average. This is because it can keep pace with rapid growth, and temporary staff often operate using signed timesheets, which provide excellent evidence of the debt.

  Substantial Annual Saving

  The quote we found them was able to save them an estimated 36% on the annual fees that they were already paying to their funder, a great reason to switch invoice finance companies.

  Factoring Credit Control Benefits

  In the course of finding them what they needed, it became clear that our client would benefit from credit control support from their funder. Invoice factoring is a type of receivables finance whereby the client receives both funding and an outsourced credit control service. In this case, that was a benefit that would help our client. We were able to find them a factoring facility at the same rate that they had been quoted for a funding only facility, where they would have to undertake their own credit control.

  Combined Benefits

  This means that they will benefit from both the substantial cost saving on their annual fees, and the addition of a first-class credit control service from an independent invoice finance company. There are a variety of other benefits that come from outsourcing your credit control activity, which they may enjoy over time.

  By Glenn Blackman