Invoice finance quotes can differ dramatically.
They can differ in different ways and for different reasons and it is important to compare like with like. We have touched on this elsewhere on this forum and this article is worth a read – http://www.invoicefactoringforum.com/invoice-factoring-quotes-comparison/
However, when considering any invoice finance quote is is important to understand the following:
- what service is actually being offered. Please remember that a full factoring offer that includes a credit control service and bad debt protection will cost less than a finance only facility.
- have you considered total costs? different companies charge different fees beyond the headline rates of the service fee and the discounting fee. Some service fees are all inclusive while other companies charge for nearly everything on top of the service fee.
- What is the quality of the service? Remember you get what you pay for.
- Is the structure of the facility right for your company? If not then no matter how cheap it is you are wasting your money.
I feel it is important to find the right structure and then properly evaluate total costs to allow a genuine comparison.
