Invoice finance providers have been around for decades, but the industry is still relatively new to many businesses. As a result, you might not know what to expect when you’re trying to find an invoice finance provider that meets your unique company needs.
Fortunately, there are some things you can look out for when conducting research so that you’ll be more likely to find the right fit.
Invoice finance providers aren’t all the same
There are a few things to look for when selecting an invoice finance provider:
- Low-interest rate – Look for a provider that can offer you the lowest possible interest rate on your invoices. The lower the interest rate, the better.
- Fast approval process – You want your money as soon as possible, right? It’s important to find a provider who can approve your invoices quickly so that you get paid faster. If they’re slow with their approvals, it could cost you hundreds or thousands of dollars in lost revenue each month.
- Good reputation – Be sure to check out reviews from other business owners who have used this company before making your decision about which invoice financing company would be best suited for your needs.
It’s also important to make sure that whoever owns this company has been around long enough (at least 5 years) and has had no issues with customers or regulators in order for it not only pass muster with them but also give confidence in how well financed they will be now that there’s such high demand among companies.
Check for hidden charges
- Understand the fees. A good invoice finance provider should be clear about their fees and how they operate. If you’re unsure about details such as interest rates, processing fees and charges for late payments, ask questions. If the provider isn’t willing to answer your questions then move on to another candidate.
- Undertake due diligence with care. Be sure to check out all of your options before making a final decision regarding who you choose as your invoice finance provider – there are many providers out there and each one will have their own unique quirks so make sure that you do some research before signing any paperwork!
Avoid nasty surprises by being an informed buyer.
When looking for a provider, you should:
- Ask questions. Don’t be afraid to ask the tough ones. If you don’t know what you’re looking for, how will they know?
- Check their website. You can find information about their services and fees on their website.
- Look at their terms and conditions. They should be transparent with how they charge interest and fees so that there are no nasty surprises when it’s time to pay up your invoice.
- Check their complaint record with the Better Business Bureau (BBB). If a company has an unsatisfactory BBB rating or has had many complaints filed against them in recent months or years, it might be wise to look elsewhere as these types of businesses could be more likely than others to take advantage of customers’ lack of knowledge about invoice financing providers.
With all the options available, it can be overwhelming to decide which invoice finance provider is right for your business. But by following these three tips, you can find a provider that fits your needs and helps you grow.