Thinking about a switch in your invoice finance provider? Whether it's dissatisfaction or the pursuit of better service, this guide is your strategic roadmap. We’ll unpack the essentials, from demystifying UCCs to navigating the transition process, and equip you with pivotal questions to ask before committing to a new financial partnership.
The UCC is a critical element in invoice financing, safeguarding the financier's interest, much like how a mortgage secures a property. Its functions include:
Switching providers is a significant financial maneuver, akin to refinancing. The process involves a buyout, where your new provider assumes the balance from the previous one, as outlined in a Buyout Agreement.
Understanding the buyout amount is crucial. It typically includes your outstanding invoices minus reserves and any added fees. This knowledge is key, particularly if the new agreement offers better terms that could offset the buyout costs.
Transitioning can be cost-efficient if managed properly. Using new invoices for the new financier can prevent double charges. Timely communication with your previous provider is vital to avoid additional fees.
Changing providers may prolong the usual process. This includes time for calculating the buyout amount and obtaining necessary approvals. Choose an experienced company to facilitate a smoother transition.
In certain cases, both financiers may temporarily share rights to your invoices during the transition. While not typical, it's a possibility to be aware of.
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Don't wait long periods for a loan. Many of our factoring deals can take place in as little as 24 to 48 hours. If you need capital right now or are looking to expand then factoring is the way to go. We work on your time instead of you working on a bank's schedule.
If you need cash and you're sitting on a lot of unpaid invoices then factoring with us is the way to go. We'll give you the cash that your business needs and collect from your customers.
Debt is risky while at the same time being beneficial to growing a business. Start-ups can relieve themselves of the risk of debt and still create capital with factoring.
If you're a start-up or your business has a poor history or credit then you can still get the cash that you need. Today's banking atmosphere makes it a challenge for even the most-qualified businesses to get a loan. Factoring takes care of all of that.
Without a collections department or a small staff, collections often come down to you doing all of the leg work. Our Factoring Service will alleviate that burden and provide the service that you're not equipped to handle.