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• 09 Sep

  Warning About Lists Of The Best Invoice Finance Companies

  

  This is a warning about lists of the best invoice finance companies that you might find published online.

  I have said many times that there really is no single top or "best" provider for all cases. Even for all recruiters or even all recruiters of a given size. It really is always a case of needing to match the provider to your particular organisation and its needs. Products differ dramatically between providers e.g. some offer selective, some require all your turnover. Risk appetite will differ as can the level of funding and of course pricing. Even the size of the funder or bank status will appeal (or not) to different customers.

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  Warning About Lists Of The Best Invoice Finance Companies

  I have recently noticed several articles online that purport to list the best invoice finance or factoring companies in the UK. They draw my attention because they often present differing lists, and so I want to give a general warning about these types of lists.

  Consider The Criteria

  When viewing any list firstly consider the criteria that have been used to draw up the list. Be cautious if there is no explanation of the criteria that are being used to determine which are "the best". Any well written article is going to state exactly what the source material is for such a comparison. We have published lists ourselves but always based on stated and reliable means of comparison. For example a list could be drawn up based on various criteria such as:

  • Research conducted amongst customers.
  • Reviews or ratings given by customers.
  • Awards (where they are awarded based on some measure of merit e.g. customer testimonials or research).

  Warnings About Lists

  I saw one article the other day that stated its list of "the best invoice finance companies for recruitment companies". The article was published on a well known business site for new businesses, but there was no statement as to how they had arrived at the list. The companies on the list were all legitimate but it drew my attention as one of the companies was a provider that we have had been speaking to prospects that had been wanting to leave.

  Another article that I came across stated a list of "the best invoice finance companies" which prompted me to contact the person the person that had written the article. I asked how the list had been drawn up and he stated that it was based on asking a particular broker platform for their opinion based on the number of referrals that they make. He went on to offer to include us in the list. There is of course nothing wrong with publishing a list of who a particular broker thinks are the best, or a list of the funders that received the greatest number of referrals from a particular broker. However, is that how you would determine which is the "best invoice finance company"?

  By Glenn Blackman