This comparison service is provided by Touch Financial Support Ltd.
Touch Financial is a leading UK invoice finance broker which works to help businesses find the right products for their needs. They compare invoice financing services from a range of different lenders, aiming to find the one that best suits the needs of their business customers. Touch Financial consultants look at the profile of each business, including cash flow, accountancy needs, and any other specific requirements, to match them with the most appropriate invoice finance provider and product. Touch Financial is a trading name of SFP Brokers Limited, authorised and regulated by the Financial Conduct Authority (FRN: 727220). Touch Financial is a broker not a lender.
Invoice Finance FAQ
How does Touch Financial choose which invoice finance provider is most suitable for my business?
Touch Financial have developed an in-house system which enables them to match invoice finance funders to the requirements of different industries and businesses. They look at the individual situation of each business to determine which providers/products would be most appropriate (if any). A trained consultant will talk to you over the phone to confirm all the necessary information, which they would then convey to the funders they deem most suitable.
Are there many differences between invoice finance providers?
Yes, providers can differ quite significantly as an invoice finance product that suits one business may not be right for another. Because many different industries use invoice financing, specialist providers and products have developed over time to meet their particular demands. Touch Financial endeavour to stay abreast of any new invoice financing developments and products, matching them to specific business needs.
Are some invoice finance providers cheaper than others and do some offer a better service for customers?
Invoice finance funders have different rates and offer varying levels of service, as customers themselves have different priorities. Some customers will focus solely on the price, whilst others may choose a more ‘hands on’ provider which offers an extended service, and these preferences are reflected in the range of invoice finance providers available.
Are you penalised if you want to terminate your contract with an invoice finance provider?
The length of a contract, and the specific terms attached, will vary between individual providers. Each customer will be in a formal agreement with the lender, so more information on leaving and any cancellation fees would be explained in the relevant documents. If being committed to a lengthy contract with a funder is a particular concern for a business, Touch Financial can recommend funders that offer monthly rolling contracts.
Can you switch from one invoice finance provider to another?
Many of the invoice finance providers Touch Financial works with are members of the Asset Based Finance Association (ABFA). These funders offer an inter-factor transfer process which should allow customers to change from one provider to another. However, customers are still likely to have to pay a transfer fee. Touch Finance aims to make customers aware of these from the start to avoid any hidden surprises.
How does Touch Financial make money?
Touch Financial receives a commission when a funder provides an invoice finance facility to a business. Their consultants don’t know the rates of commission, so this will not influence them when they match your business to certain providers. Customers can receive more information about the commission paid to Touch either from their funder or from Touch Financial themselves.
Is Touch Financial able to negotiate rates and fees with providers?
Yes, Touch Financial can help customers get the most competitive rates from their panel of funders. They can negotiate costs and also offer advice on any quotes that customers receive.
What are advance rates?
An advance rate is the maximum percentage of an invoice amount a finance provider agrees to pay to a business. On average, advance rates tend to range from 80-95%, but this varies between industries and depends on the “quality” of the invoice, as well as the particular situation of each business. For example, some industries, such as construction, may only be able to get a 60-70% advance from a funder.
Does Touch Financial act for the lender or for the customer?
Touch Financial always acts for their business customers. Although they build good relationships with their providers, Touch acts in the interests of the customer when helping them to obtain an invoice finance product.