• 30 Aug

    Businesses Prefer Tariff Invoice Finance Charges Over Fixed Fee

    Another question from our recent invoice finance research survey where we questioned 100 randomly selected SME businesses (Small and Medium Sized Enterprises).

    We wanted to find out the view on fixed fee deals which are being offered by several factors at the moment. Indeed we have completed such deals ourselves with various factors but we wanted to gauge opinion regarding the option of a tariff of charges or a fixed fee.

    Therefore, we asked "For businesses that use invoice finance, do you think that they would prefer an all inclusive single charge for the service or a tariff of charges where they pay for specific services each time they use them?". Invoice finance is the collective term applied to factoring and invoice discounting.

    The result was that 74% of businesses said that they thought a tariff of charges would be preferred and the remaining 26% said that they would prefer a single fixed fee. Clearly there is a market for both, and options for clients in both cases, but its interesting to see the weighting towards the tariff approach - food for thought when designing new invoice finance products perhaps!

    By Glenn Blackman

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Examples of funders we work with:

seneca
pennyfreedom
metro bank sme finance
giant finance
skipton
bibby