As Factoring has developed so has a broker market offering advisory and introductory services. A broker should obviously know the market, the providers and be able to explain, without the use of industry jargon, how a facility works and what costs, benefits and pitfalls may be encountered.
By using a broker a business should expect completely impartial advice. Brokers are paid by lenders on a success basis so any broker attempting to take a fee direct from a business should be avoided.
Very often a business will secure a more competitive rate by using a broker in preference to going direct to a lender. Likewise a good broker will know to which provider a prospective user should turn. All Factoring Companies have different criteria as well as varying likes and dislikes with regard to industry sectors.
It’s difficult to know to which broker a business should turn. Web based ones used automated costings to provide indicative prices but at best these are only going to be a rough guide and at worst misleading. No two businesses are the same so they all have differing costings.
Experience is vital, the market changes frequently so a broker with a detailed knowledge will have an in depth insight.
Independence is also important, ideally the broker should not be advising a business with an interest elsewhere, either through being owned by a factoring company or professional services firm.
Just Factoring is a specialist, independent and importantly, experienced brokerage that helps businesses through the often complex process.