There are 2 main reasons why a company may desire to change invoice finance lender, unhappiness with either:-
If it’s price this can be tricky from a broker’s perspective. The reason for this is the competitiveness of the invoice finance market and the certain knowledge that if price is the only issue the incumbent lender will fight tooth and nail to keep their customer, usually by making some form of financial concession to the client. Nevertheless a factoring broker will be able to tell you almost immediately how competitive your rates are and help you quickly assess if it’s worth the time and effort looking for a cheaper deal.
A service issue can be a little more straightforward. Usually there has been some sort of breakdown in the relationship between the company and lender involved. In this case a broker’s experience can be essential to finding an alternative factoring company who can provide what the current lender cannot.
Again it is important to note that with 60 lenders in the debt factoring marketplace, it can be hard to know which lenders can remedy the issue in question. Let’s say you make a call to a lender at random and they assert they can solve the issue. Whilst that may be true they may not be the lender best placed to solve the issue, in this instance you may find that you are offered a facility that solves the service problem but does so at a significantly higher price than other, better alternatives could offer. The swiftest way to ensure you can garner the best rates available is to engage a factoring broker. They can select only lenders who can solve your service issue and from those you can decide which lender will provide the most value for money.