We talk to a lot of businesses trying to change their factoring company. It ought to be a straightforward process but there are obstacles to look out for and to bear in mind. It does happen frequently and there could be big savings to be had in moving.
- Do check the terms and conditions that govern your existing arrangement. One issue is cost and it’s really important to check termination periods. Your agreement will be for a certain period and trying to exit early can result in penalties being charged.
- If there is a specific reason for leaving make sure that reason is known to the incoming factoring company. For example if you are not getting as much money as you had been led to believe from your current lender be certain the new factoring company will provide the extra funds.
- The independent factoring broker has a critical role to play here. A business fundamentally happy with its existing provider probably has little to gain from switching and the brokers position should reflect this. If the reason for change is valid then a good, independent broker can and will help.