Video Transcript
If you think invoice finance would be a great solution for your business, it’s time to look at individual providers. When choosing a provider, consider their ability to service the business of your size, location and industry. Once you’ve established this, make sure you ask the following questions. How flexible is their service? If you’re a growing business, your facility needs flexibility to grow with you. Can they scale up the facility as your business grows? Make sure they’re willing to work with you and your business in different scenarios you might encounter. What are their fees, and is there anything hidden? Some invoice finance providers will try to charge extra fees for services that are vital to the package they offer. This cost can add up so make sure to be clear on what all the facility is going to cost you and ask them for a list of all fees that will be charged. How would they interact with your customers? Invoice financiers will need to run checks on your customers and occasionally make contact with them to verify submitted invoices. Most of the time, this is done very professionally and without interruption to your business, and it’s rarely a problem for your clients, but just check how they work and what their process is. Do they get heavy handed? And just check online if there’s any negative reviews. What is the process if a customer fails to pay? Look in depth into how the financier will treat overdue invoices. Do they get heavy handed? Is it a recourse or non recourse facility? If you’re on the hook, in that it’s a recourse back to you, consider whether there is an ability to swap out the overdue invoices with new invoices and the other thing to ask is do they have trade credit insurance to protect you in the event that one of your debtors has an insolvency event. How easy is it to use? Invoice finance should be easy and fast, your providers should have a smooth, online, real time portal, backed by fast invoice approval system that reflects funding availability without the need for you to email or phone to get regular updates. Ask about how their interface works and how often they fund, and how quickly they release residuals, once your debtor makes payment.
