Thinking about switching your invoice finance provider? Our comprehensive guide provides you with a clear understanding of the entire process. We cover the essentials, from UCCs to transitioning, along with critical questions to consider before committing to a new partnership.
Invoice finance companies use UCC filings to protect their interests. Understanding UCCs is crucial as they:
When you switch providers, it involves a "buyout." Your new provider takes over the balance from your previous one, similar to a mortgage refinancing. This is formalized in a Buyout Agreement.
The buyout amount typically includes your unpaid invoices minus any reserves, plus additional fees. It's important to request a detailed breakdown to fully understand all costs, including early termination fees.
Transitioning can be cost-effective, especially if you provide new invoices to your new financier. Avoid re-submitting previously financed invoices to prevent double fees. Prompt communication with your old provider is essential to avoid additional charges.
Changing providers may require extra processing time due to buyout calculations. Working with an experienced financier can help make this transition smoother.
In some cases, both your old and new financiers may hold rights to your invoices during the transition, though this is not always the case.
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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.