As the UK’s leading invoice finance comparison site, we are well aware that the deals available differ from provider to provider, and in many cases, the deal you sign up for initially may not still be the best deal 12 months down the line. For that reason, it is not only important to stay on top of the deals that are out there, but also be willing to change partner if the service levels you’re receiving are not meeting your expectations.
So, if you want to switch your invoice finance provider, what steps should you take?
- Check your current contract – The first step you need to take is to check your existing invoice finance contract. You need to find out:
- If there’s a minimum period – Most invoice finance partners will include a minimum duration of the agreement before it can be terminated. If you do choose to terminate the contract early, you must be aware of any financial penalties that may apply.
- How much notice you need to give – In most cases, there’s also likely to be a notice period you must complete before you can terminate your invoice finance agreement. For example, a 12-month contract may have a 3-month notice period. It is common practice for the notice period to only be valid once the minimum term has been completed. There may also be restrictions on when or how notice must be given, so make sure this is something you are aware of before you make the switch.
- Why do you want to change? – Make sure you know exactly why you aren’t happy with your current partner before you decide to change. This will help to determine what you look for from your next provider.
There are a number of reasons why you might want to switch:
- To reduce costs
- Ask your existing partner for a price reduction
- Use Business Expert to search for more competitive quotations
- Consider moving from factoring to invoice discounting
- Not happy with the level of service provided
- Is your current partner slow to collect payments?
- Perhaps their credit control process isn’t up to scratch?
- Do they pay you as quickly as they should?
- You need more funds
- Talk to your current provider to improve your existing deal
- Not all providers fund the same percentage of the invoice. Talk to alternative providers that can release additional funding
- The lender may have changed criteria specific to your sector
- Consider approaching providers that work specifically with businesses in your sector
- Your provider wants to end the agreement
- It could be that the agreement is not working for your current provider, which may actually make it easier to find a new deal elsewhere
- Seek advice
If you’re not sure how to switch invoice finance partner, or even whether it would be worthwhile, seek some advice from those around you. For example, an accountant could provide you with worthwhile advice, although bear in mind that you may be charged. Alternatively, please give Business Expert a call on 08000 24 24 51 or email: email@example.com for completely impartial, obligation-free advice from our team.
- Sound out your new provider
Before you discuss your intention to leave your current partner, your intended new provider will want some assurance that you are leaving for the right reasons. The new provider will want to see there are sufficient invoices to pay off the current provider. Once you have confirmation there are sufficient invoices to clear, you can then prepare to serve your ‘notice of intent’ on your current partner.
- Serve a ‘notice of intent’
Once you have decided you’d like to switch, you need to serve a ‘notice of intent’ on your current partner. Check your contract for details about how this should be served i.e. whether it’s in writing to a specific address, by email or in person.
Normally, the first step will be to inform your business account manager of your decision. You should then serve the notice of intent in email or in writing in accordance with your contract. You should also ask for confirmation in writing that the notice has been received.
- Compare invoice finance providers
Now you know that switching invoice partners is a relatively straightforward procedure, you’re ready to start comparing the UK’s invoice finance providers to find the very best deal.