Factoring Costs
By carefully managing your invoice finance facility and reviewing your terms within the market you can reduce costs dramatically.
Here are a few tips on what to do:
- Carefully check your existing agreement for minimum base rates. You may be paying 2% over base but some lenders have a minimum base rate that is well hidden in their terms and conditions.
- A major variable in pricing an invoice finance facility is the turnover. If your turnover has increased you may be in a position to negotiate a reduced percentage service fee.
- Typically all payment will be made into your trust account or to your factoring account and the only deposits into your bank account will be the transfers from your invoice finance facility. To minimise borrowing you should run your current account as close to a nil balance as is practically possible.
- Manage your cashflow and anticipate what is needed. This will allow you to take advantage of free BACS transfers rather than using expensive same day CHAPS payments.
- Use the market to your advantage and review your facility regularly. By using Smart Factoring Quotes you can take the workload out of doing a full market review.
Invoice Finance Quote
Please fill in our free online quotation form to receive a bespoke online quotation for your business.
If you would like to know more about invoice factoring costs and invoice factoring costs call us on 0845 863 0738 or email us.
