Online Factoring And Invoice Discounting Quotations
Read This Before You Get An Online Factoring Or Invoice Discounting Quote
There are a number of websites that provide online quotations for factoring and invoice discounting facilities. They can be a helpful way of obtaining price comparisons but before you use an online quotation site please read this article so that you understand the possible issues and the differences between a quotation site and a personal search service.
On the web, you will find a number of online quote sites that will provide you with quotes from one or more factoring or invoice discounting companies immediately. We have dealt with customers who have used these sites and whilst they serve a particular sector of the market we have come across a few instances where customers have mentioned issues that have arisen. These are some of those issues:
Amending Quotations
In some cases, the quotations are produced automatically using formulae that are built into the website. We have come across examples of quotations being obtained by clients and the quotation subsequently being adjusted when they speak to the actual provider based on a fuller discussion about their circumstances.
As an example, we came across one client who was quoted a 90% initial payment percentage with 3 months notice of termination by an online quotation site. When they spoke to the actual factoring company and fully explained their circumstances, the quote was amended to an 85% initial payment with 6 months notice of termination. At FundInvoice, we offer a personal service and speak directly to the providers to ensure that you receive reliable quotations.
Quotation Overload
Most people like the idea of getting several quotes so that they can compare prices, however, we spoke to a client who received 6 quotations from an online quotation search service. This number of options can make the decision more difficult as the choice is still so wide. A personal search by an experienced broker will narrow down the field of choice to a manageable number that you can pursue - the number of quotations should be driven by your requirements and the broker will be able to help guide you to the best invoice finance company for your business.
Focus On Price
One of the benefits of a site that allows you to compare online quotations is that you can compare the prices charged by different providers. However, there is a drawback with this approach in that it doesn't focus on the service you will receive or the nuances of how the provider operates. Whilst price comparison is important, in practice there are subtle differences between the way that different factoring and invoice discounting companies operate and these differences need to be understood. Factoring with one provider may suit one business but not another due to the nature of the service provided. If you were buying a new car, would you choose purely based on price and nothing else? Of course not, so it follows that you would not want to buy a service-based facility such as factoring purely on price. A broker service can help you understand the service differences between providers as well as enable you to compare prices.
