When was the last time you carried out a full review? Are you confident that you’re getting the most efficient and cost effective funding for your business? It can be easy to assume that you are, but experience shows it often pays to conduct a regular review. We’ve listed five things to consider:
Costs
Many trust their business funding partner to provide them with the best deal for their business but with a bit of investigation often find they are paying well over the odds.
Your business may have changed considerably since you originally entered into your invoice finance agreement. Your turnover may have increased, your debtor concentration may have decreased, your debtor quality may have improved – All things that could mean your original business finance facility terms are no longer appropriate or cost competitive.
Don’t be fooled. Some facilities also offer attractive headline terms. However, the true cost of a facility may not become apparent until additional fees and disbursements are incurred.
Prepayment Level
Your current provider may be imposing an inappropriate prepayment level and as such, your business could be missing out on valuable additional funds.
Your facility may also be subject to restrictive concentration limits which again may be reducing the availability of funds to your business.
A full facility review can identify alternative lenders who may be willing to offer a higher prepayment level – This could translate into your business having access to more cash.
Poor Service
You may be feeling neglected by your funder or frustrated with the level of service received – If so, you may wish to assess your options.
Different business funding partners offer varying levels of support, interaction and engagement – There’s never been more choice in the market and as such, there’s sure to be a funder with a proposition well suited to your needs.
Lender Appetite
Some business funders will be more supportive to certain sectors. Some will only provide funding to a certain level. Some will only fund certain business types. Each will have a unique and constantly evolving appetite.
By regularly reviewing your facility you can be sure that your current terms are still appropriate for your business needs and goals.
Additional Needs
You may wish to compliment your existing facility with additional funding lines that your current provider is unable offer i.e. stock finance or trade finance.
A comprehensive facility incorporating supplier, stock and debtor funding lines may be more appropriate for your needs – If so, you may wish to seek a funder who can provide a holistic ‘one-stop’ solution.
Sure you’re still onto a good thing? At KeySME, we offer a free facility health check to ensure your business is getting the right support, at the right price. We review your current arrangements, understand your requirements and identify the lenders most appropriate to your business needs. Get in touch today and unlock your potential with KeySME.
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