How Can You Obtain A Reduction In Factoring And Financing Fees?
Getting a Debtor finance facility can sometimes prove slightly more expensive, depending heavily on the state of your business, your debtors and your accounts in general. How can you obtain a reduction in factoring and financing fees?
The simple way to be eligible for a reduction in factoring and financing fees, is to make sure your business doesn’t appear risky to the financier, the best ways to do this is to:
- Have the best quality customers you can, making sure you are only dealing with blue chip debtors
- Have excellent, up to date paperwork evidencing the work has been done and the products have been delivered. A clear paper trail will put you in good stead including Purchase orders, invoices and proof of delivery
- One other way which you can put your business in a good light for your financier, is a very simple one and that is to make your business look presentable. If a financier comes to visit your premises, make them feel like you actually care about your business. This will make them feel comfortable that if something goes wrong you care enough about your business to make it right.
These may seem like obvious steps but you would be surprised the amount of businesses who don’t keep track of their paperwork or take pride in their premises.