Have you ever gone to a business lender with little or no idea of what to expect when you arrive? If so, you may well have been taken advantage of. Not all business lenders are as honest and scrupulous as Gener8’s invoice finance services are, and unless you know exactly what to expect before you borrow, you have no way of knowing whether the rates and terms of the ledger finance service you’re being given are fair or not. We hate the idea of good, hardworking companies being taken advantage of by unscrupulous lenders, so we thought we’d share with you the key features you should be looking for in an invoice finance and discounting company, or any business lender for that matter.
One of the most important elements that any lender can provide for their clients is flexibility. SMEs and growing companies of all shapes and sizes cannot be pigeonholed or shoehorned into a one-size-fits-all solution, so you need a lender that can accommodate your specific needs. If they’re not prepared to adapt for your business then they’re probably not the right solution for you.
It probably isn’t that high on your list of priorities, but you’ll be surprised how much easier it is when a lender is actually a pleasure to work with. Seeking financial assistance can be stressful for struggling companies and growing businesses alike, and the last thing you need in either of those situations is to communicate with a taciturn or unhelpful lender.
Different lenders will offer different rates depending on your situation and the current Bank of England baseline interest rate, but there are a few things you should look out for when choosing your business lender. Invoice finance and discounting companies typically charge both a service fee and a discount margin on the amount you borrow. Some service fees are quoted as a percentage of business turnover, whereas others, such as Gener8’s, may be fixed at a set rate that depends on the size and type of facility you have, which can make financial planning easier. The discount margin works in a similar manner to an overdraft with interest charged on funds drawn down; this is charged at a percentage above the Bank of England base rate.
A good lender should have an open, transparent fee structure that outlines anything they will charge you in advance. You may be charged additional fees depending on your circumstances. For example, those companies choosing to draw funds by faster CHAPS payments rather than BACS are likely to find that there are some extra costs associated. The important factor at play is to choose a company that is willing to sit down and discuss all fees upfront with you in terms you can understand.
When you choose your business finance provider, you want to choose a lender that will fully invest themselves in your company’s interests. If all you get is a short-term injection of cash followed by indifference, you may as well use a bank. The best invoice financing services will help your business to achieve its long term ambitions by committing to you for the long run, and providing a personal service that lets you know that you’re more than just a number to them.
If you need finance, you probably need a decision sooner rather than later. What good is finance to you if you have to wait days for it to come through while cashiers talk to managers, managers talk to head office and funds are transferred from one location to another? Short lines of communication and immediate results are vital if your lender is actually going to be of help to your business.
If you’re looking for an invoice finance and discounting company that offers you all of these values and more besides, Genr8 Finance could be the company for you. Take a look at our invoice financing and credit management services and see how effectively we put our money where our mouth is.
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