If you run your own business and are looking for innovative ways to generate more efficient cash flow, then you may be unsure about where to start.
This is natural because there are several different avenues you can take. While the obvious pillars of your business that may need addressing include your client acquisition strategy, and your product or service price points, there are other details that could make a significant difference to the financial health of your business.
A great example of this is invoice financing. By switching invoice financing providers, you can find lower interest rates, more competitive service fees, and an increased advance rate, which can help you inject more cash into your business when you need it most.
Not only this, but by working with an invoice finance provider that suits your specific requirements, you could find it easier to manage your business month to month. Although changing invoice finance providers used to be a complex task that was riddled with potential risks, it has become far simpler to make the switch.
This is how to switch invoice finance providers:
By changing invoice finance providers, you may imagine that you are throwing out a trusted system in favour of an untested alternative, but although this is true, the transition is easier than you might envisage.
For example, you might not know that the outgoing and incoming lenders complete most of the transfer process themselves. This will include the incoming lender conducting a due diligence process and then arranging a particular date to take over the account from the current lender.
Invoice finance can greatly boost your business's cash flow, but this does not mean that once you have used one provider, you must stick with them indefinitely.
To reduce costs
In fact, it is well worth your while shopping around for the best deals, such as those you can find at TSF. This is chiefly because it can reduce your costs – therefore maximising the extra cash that you inject into your organisation.
For example, you may find a provider that offers lower interest rates (particularly important if you arranged the original deal when you were in a different financial position), have incurred unexpected additional fees that eat into your bottom line, a lower service cost, and lower decline rates. For more information, visit our Invoice Finance page.
Easier to integrate your business model
Furthermore, you might want to change invoice finance providers if you want to find a service management platform that is easier to integrate into your existing business model. This could improve the overall efficiency of your business and make it easier to access the service when you need it.
Better customer service
You may also be unhappy with the current customer service you receive from your provider. Perhaps they take your business for granted, neglecting you in favour of larger or newer clients, or maybe they don't have the spare capacity to guide you through the borrowing process.
These details might sound menial in some cases, but they can compound into a considerable issue if you leave them unattended. This is especially true if your cash flow issues are regular and severe. If you are waiting for your chosen provider to pay you on time, then it can cause mental stress and leave you unable to pay your staff members, contractors, or other overhead bills which keep your company afloat.
As the outgoing lender and incoming lender will complete most of the process without the need for your help, and the associated paperwork will largely be done in-house, this leaves you to carry on running your business like normal, meaning you don't have to dedicate huge amounts of time to switch.
To switch providers, you will have to choose an alternative, but once you do and the incoming lender has looked over the business and the book debts, they will send an offer letter. Once accepted, the transfer process can start. A date will be agreed upon, and they will manage the transfer.
If you want to start changing invoice providers, then consider reaching out to our team. We can help you find the best invoice finance provider for you using our years of experience in the invoice lending industry.
Our expert team can source you the right financial product for your business, making the process painless for you and your staff and ensuring that you land the most competitive deal possible. TSF will identify your specific requirements and then align you with a lending partner who can best serve your needs.
If you're ready to make a switch, contact TSF Finance to help you find the best invoice finance provider for your business.
