Company Factoring UK Wide - Which Lender Is Right For Your Business?
All businesses know that, when it comes to using suppliers, some are more suitable than others for their particular needs. This can depend on a whole variety of reasons from their location to their culture and ways of doing business. In many cases making exactly the right choice is not too critical as it is often a relationship that can be easily ended if things aren’t working out.
Unfortunately this is not always the case when a lender carries out factoring for a business.
Therefore it’s very important to make the right choice. When it comes to company factoring UK businesses have plenty of options available to them it’s just a question of knowing exactly what to look for.
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Company factoring UK – and what to look for
Will you get the support you need?
Lenders vary greatly. Some get very close to your business, offering advice and working with you every step of the way. Others work at a slightly greater distance. Depending on your kind of business, your expectations and the needs of your customers, you should judge just how much support a particular lender will provide and whether this is in line with your expectations
Can you afford the costs?
While using company factoring UK businesses will enjoy a greatly improved cash flow situation, but this will obviously come with its own set of costs attached. Before choosing any lender you should take a good look at the costs that you will be exposed to and how seriously they will affect your profit margins.
Would you like your lender to be located nearby?
Many businesses find it very beneficial to have a lender that is located nearby. It makes meetings easier to arrange and can help to build a closer relationship. It may also seem more logical for your customers to see that you are using a lender which is close to your own headquarters rather than one elsewhere in the UK.
What’s the length of commitment?
Depending on your business plans you might see factoring as a short-term fix or a long term commitment. So it makes sense to only become involved in an arrangement with a factoring company which fits in with your projected timescale. Generally speaking, a lender will be happy to extend a contract but might be less willing to cut it short without imposing punitive charges.
Will they fit in with your systems?
When looking for company factoring UK businesses can sometimes overlook one of the most important questions of all. Does the lender fit in with the systems the business and its customers will be used to using? This can range from the way in which invoices are supplied – online or by post – to the way the sales ledger is handled. Obviously, it makes the best sense to ensure the transition to using a lender can be made as smoothly as possible.
Company factoring UK brokers and their role
While there are many questions to ask, many can be answered simply and quickly by using a broker like Touch Financial.
Touch Financial is the UK’s leading invoice finance broker, helping hundreds of companies find the right finance every month. The benefits of working with Touch include:
- Free service - we receive commission from lenders – so you don’t pay a penny.
- Quick response - you can expect a fast response as we have close working relationships with the UK’s leading lenders.
- We’re independent - independently owned and run, we offer totally impartial advice
- We work with over 20 top lenders - including the big banks and independent lenders, including Lloyds TSB Commercial Finance, Royal Bank of Scotland, Ultimate Finance and Bibby Financial Services.
- Receive favourable rates and special offers - our close links mean we’re offered special deals and rates to pass on to our customers.
- Nationwide coverage - so wherever you are in the UK get in touch today and we can help.
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Also in this section:
- A factoring brokers role
- How to find the best deal from a broker factoring company
- The difference between broker factoring and going direct
- Considerations when selecting factoring companies
- Company factoring UK - Which lender is right for you?
- The role of an invoice discounting broker
