I read on a blog recently asking what a factoring or invoice financing finance broker does for his money. It was suggested that a broker should approach the most number of finance companies possible and get the cheapest quote for their customer. I couldn’t disagree more. Any deal that gets touted around the market and effectively becomes a beauty parade of factoring companies can do a business more harm than good. The problem is that if a finance company is aware that they are up against three or more finance companies they don’t take the deal seriously. We have seen business recently that have seen six or seven finance companies.
At XL Business Finance we will talk to our customers and very quickly we can narrow the most appropriate finance company to two or maybe three. Different invoice finance companies all have different ares of expertise. WE understand the factoring and invoice discounting market and we understand which finance company will be best suited for your particular requirements. Some finance companies are good in construction which has allot of contractual debt. Other finance companies are good at international trade and some are better than others at credit control. Also there are a number of regionalized companies that a strong presence in certain geographical areas. Why would you use an invoice finance company based in London if your business is based in Manchester or visa versa.
So when we have narrowed it down to the two or three most appropriate finance com[pany w will set up meetings on your behalf. We than say then it comes down to personal choice and you will more often choose the company that you feel you can develop a rapport with the members of staff. In addition this costs you nothing. Our service is totally free. We do however take a introductory commission for the finance company. All factoring and invoice discounting companies will pay commissions so rest assured our advice will be impartial and we wont send you a bill!!!
