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• 16 May

  Tips To Get The Best Invoice Finance Pricing.

  Whether you already use invoice finance, or are looking at the products for the first time, you are likely to want to secure a facility at the best pricing that is available. We spend all day, every day getting invoice finance prices for companies, so we put together our top tips to getting the best invoice finance pricing.

  Top Tips On Getting The Best Invoice Finance Pricing

  If are looking to get a good deal these are a few tips that might be helpful:

  1. Shop around - you will no doubt imagine that all providers charge roughly the same? That is not the case, there are significant differences in the prices charged by some providers compared with others. For example, we saw an 86% swing in the prices charged by different providers, for the same client.|
     
     
  2. Renegotiate regularly - once you have checked your current rates against the market, if you are already using a provider and don't want to move, go back to them to renegotiate your rates. Think about the timing vis a vis any notice period, or minimum term that you are locked into with your current provider. Moving invoice finance companies doesn't have to be difficult.
     
     
  3. Consider discounts and offers - some of the providers offer discounts and offers, keep up to date with those for an additional cost saving if you take out a new product.
     
     
  4. Base costings on realistic projections - what you are speaking to a provider about a costing, use realistic figures. If you don't, you may be quoted rates that are higher than you could have accessed, or you could get locked into unrealistic minimum turnover requirements - that you won't achieve.
     
     
  5. Do your research - have a look at our invoice finance pricing research. It will give you some insights into things to watch out for e.g. unrealistic minimum fees (in a few cases they can be set at levels above the turnover you are projecting, resulting in an automatic additional charge.
     
     
  6. Compare "apples with apples" - when you are comparing different quotes, be careful to work out the overall cost (not just comparing headline rates) and also ensure that they products are equivalent. Otherwise you are comparing "apples with oranges". If one provider is delivering additional services e.g. a credit control service, you need to consider the value of any cost savings that you could make, by not employing credit control staff, if you compare that with an invoice discounting quote. The nature of the facilities, and the diverse range of options and pricing approaches means that expert advice is often useful.

  By Glenn Blackman