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How to choose an invoice finance company

A question that at XL Business Finance we are asked most frequently. Imagine the financial freedom that an invoice finance  facility will provide. Up to 90% of unpaid invoices are released by way of a cash injection into your business as and when you raise your invoices. This is a great facility which grows with your business and there are many UK based finance companies offering to help. One search on google will reveal hundreds of factoring companies.  Some are bank owned, others are independent and most are still being aggressive in terms of doing deals. How do you know which finance company is best for your particular needs. At XL Business Finance we have 15 years experience of helping and advising our clients.

Invoice Finance is basically a generic term for the many different finance options available. Factoring , invoice discounting, confidential factoring and confidential invoice discounting are all basically forms of debtor finance.   Which finance company is best for you depends on which facility you require. New start businesses, businesses with a poor set of trading results or with a relatively small turnover will only be offered a  disclosed factoring facility whereby your customers will be aware that a finance company is financing your invoices.  XL Business finance would normally recommended one of the larger independents for a factoring facilty because normally they provide a better service than a bank based factoring company. However if your business is long established and profitable and the finance company will allow you to do your credit control then in certain circumstances a bank based invoice discounting company may be more appropriate. However beware if your business trading performance takes a urn for the worst then you will be wishing you have gone with a independent who tend to be more approachable and flexible.

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