The Role Of A Factoring Broker

For many companies there comes a time when Factoring becomes a logical next step to help fuel the growth of their business or help smooth out the peaks and troughs in their cash flow.

Factoring is fundamentally very straightforward in the way it works. A Factoring company “buys” all issued invoices from a business and pays up to 95% of their value immediately. The lender then takes over the responsibility for getting payment for the invoices. When this is received, the balance is paid to the lender’s client, minus a fee for the service.

There a very wide number of Factoring companies offering this service. So many, in fact, that choosing the best one to drive a business forward can be a daunting task.

This is where the role of a Factoring broker can make a big difference. Touch Financial is one such Factoring broker who can help to make the choice of the right lender for your particular business so much easier in a number of ways.

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How a Factoring broker can help?

As a first step, a broker will gather information about a business including its size, turnover, and its client profile. This information gathering is typically done online, over the phone or even face to face if they happen to be situated in the area.

Once a Factoring broker has all the information they need they will set about referring customers to lenders which are best suited to fulfil their requirements and generate quotes.

Once the quotes are received it’s the role of a Factoring broker to discuss and explain which particular lenders would be the ones most suitable to help. The broker’s knowledge of the market and the individual lenders’ strengths and weaknesses put them in the perfect position to achieve this.

There are a very wide number of other benefits which a Factoring broker offers which make them the ideal way to find a lender.

The benefits of using a Factoring broker

Save time It can be a very time consuming business looking for Factoring quotes without a broker. First you have to find Factoring companies. Then, for each one, you need to go through all the relevant details needed to prepare a quote. Finally, when you do receive the different quotes, they can be in a variety of formats so it can take time to compare their varying prices and merits.

Use a broker like Touch Financial and you only need to give the information once and a number of quotes will be provided in the same format for you to compare and contrast.

Use the broker’s market knowledge The broker deals with lenders all day every day so they know individual specialisms and are aware of any offers that may be available at any particular time. Often the relationship Factoring brokers have with particular lenders can also mean they have access to special offers and rates which they can pass on to their clients.

Choosing the right lender and getting the best deal A broker will be able to achieve, quickly, what any company would want – to find them the very best deal for their particular circumstances at the time.

In fact, this is something that we at Touch Financial pride ourselves upon.

There are five key reasons we are confident that we can offer the service you need to transform the fortunes of your business.

  1. Our service is completely free – we are able to offer our service for free as we receive commission from lenders by charging them for introducing clients. Meaning you don’t have to pay a penny for the information and advice you receive from Touch.
  2. Independent advice – Touch Financial is the UK’s largest independent Factoring broker, meaning we’re not tied to any one provider. This allows us to provide customers with the right information and not try and ‘crowbar’ them into a one size fits all solution.
  3. Working with the leading lenders – Touch work with over 20 of the UK’s leading lenders, including well know high street banks and boutique independent lenders.
  4. Fast response – You can expect a fast response from Touch and lenders as we introduce you directly to regional offices and business development managers.
  5. Exclusive rates and offers – Due to the volume of customers we introduce to lenders we have access to favourable rates and offers you won’t see anywhere else. Including a ‘trial before you commit’ offer.

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Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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