Why Switch Funders?

When your invoice finance facility is coming up to renewal, it’s worth engaging with a broker like Wise Factoring to see what other options may be available to you. 

Your business may have grown since you first applied for the facility, which should now be reflected in a reduction of your annual fees. An increased turnover also means there should be a wider pool of funders to choose from, allowing us to work with you to negotiate a new deal or a better deal with your existing funder.

Are your fees much higher than expected or recently been increased? Perhaps the concentration limits are restrictive, so you have maxed out funding with a key client? You may feel you need a higher funding limit, but your funder is not comfortable increasing it any further. Have you reached the maximum amount of credit available with a key client? Will this affect your ability to take on additional work with them, leaving the door open for your competitors? Are you happy with the service levels you are receiving, or do you find response times and collections are slow? Is your funders online portal antiquated, difficult to navigate and requiring too much time and administration?

If you are experiencing any of these frustrations, you would certainly not be alone. What may have been the best option at the time you set the facility up, may not fit with where your business is now and where it is heading.

If you are looking to reduce costs, a Revolving Credit Facility could be worth considering as an alternative. RCFs work differently from invoice finance and the fee structures vary between lenders, so it is worth comparing the options. See our section on Revolving Credit Facilities to find out more.

So, if you currently have an invoice finance facility in place and would like to look at the best alternatives, it makes sense to speak to an expert like us. There are no fees for using our service, so let Wise Factoring speak to the market in confidence on your behalf and let us put together the very best options for you to consider.

Summary of Benefits

Businesses in the UK might opt to change their invoice factoring provider for various reasons.

Seeking better rates and reduced fees is a common driver. Companies might switch to a new provider offering more competitive terms, ultimately saving on the costs associated with invoice finance.

Unsatisfactory service levels, such as poor communication, delays in funding, or ineffective collections, might prompt a switch to a provider that offers better customer service and reliability.

Changing business needs or growth may require more flexible terms, increased funding limits, or a different structure of services. Businesses may seek providers offering more tailored and adaptable solutions.

Switching to access extra services, like improved technology platforms, credit protection, or supplementary financial tools, can also drive a change in providers.

Companies might shift to providers with whom they can establish a stronger, more collaborative relationship or share aligned business values.

Shifting from full-service factoring (where the provider manages collections) to selective invoice finance or invoice discounting might be preferred by businesses seeking greater control over customer relationships and collections.

Changes in the invoice finance market, emergence of new providers, or industry-specific factors might influence a company’s decision to switch to a provider that better fits their evolving needs or offers more favourable terms.

Ultimately, businesses may change their invoice factoring provider to secure more cost-effective, efficient, and tailored financial solutions that align better with their current and future business objectives.

Switching Funders Case Studies

For further information about switching funders, please watch our video.

Our Other Invoice Finance Services

Business owner using a calculator and laptop to manage invoices and cash flow

Invoice Factoring

Invoice Factoring is a popular choice for newly established or growing businesses. The funder will advance between 85%-90% of the invoice value and manages the credit control on your behalf, confidentially if required.

Smiling business owner working at a desk with dual monitors in a modern office

Invoice Discounting

Invoice discounting is a valuable financial tool for businesses seeking enhanced cash flow management. With invoice discounting, businesses maintain control over their sales ledger while unlocking the cash tied up in outstanding invoices.

Healthcare worker assisting an elderly patient, representing healthcare staffing businesses supported by Wise Factoring

Single Invoice Financing

Single invoice finance, also known as Spot Factoring, allows you to receive an advance against single or selected invoices. This can be used as and when required, without the need for any long-term commitment.

Woman using a calculator for some calculations

Revolving Credit Facilities

Established businesses with a turnover above £1M often prefer a revolving credit facility. With no requirement to upload invoices and typically available without a personal guarantee, a revolving credit facility is a fantastic ‘In case of need’ product.

Construction workers walking across a bridge on a large infrastructure project

Construction Finance

In the construction industry, Construction Finance is used to release cash against your applications for payment or payment certificates. It can also be used in other industries that receive staged or milestone payments throughout the term of a contract.