Can you change your invoice financing provider?

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

Over the course of a number of years companies can see more benefit in changing their invoice financing provider rather than staying loyal to one lender. In the early years of invoice factoring, remaining loyal to one lender will present them with a number of benefits, but over time these can wane, and a business will see more positive benefits from making a switch.

A lot of business owners who have turned to invoice financing to help free up capital tied up in their own clients’ outstanding invoices aren’t sure about whether changing providers is a possibility. We are here to tell you that businesses are able to change provider quickly and easily, no matter what the reason is for the change, even if they currently have an invoice financing/factoring provider.

The main reason businesses choose to change provider is to save money by finding a better deal, but there can be other factors at play, such as companies being unhappy with their current providers service or feeling that they are not currently on the best deal available.

How to switch your invoice financing provider

Any business can have a new lender complete a due diligence on their company accounts and outstanding invoices whilst in a current plan with another provider.

The new lender can then make an offer to the company, when accepted, triggers the transfer process. Lenders deal directly with each other, organising a transfer date. On the given date a funding calculation will work out how much they can generate from the debtor book on that specific date. The resulting calculations will be the amount paid to the outgoing lender to complete the transfer.

If you are currently being provided invoice finance but feel you may be able to get a better deal elsewhere, search quotes using Quote Goat today to make sure your current pan is the right one for your company.

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