If you're contemplating a switch in your invoice finance provider, this guide is tailored for you. We’ll walk you through understanding UCCs, the transition process, and vital questions to ensure you make an informed decision about your new financial partner.
UCCs play a crucial role in invoice financing. They're like a mortgage for your invoices, securing the financier's interest. Key aspects of UCCs include:
Moving to a new provider is similar to refinancing. Your new financier takes care of settling accounts with your previous one, through a Buyout Agreement, simplifying your transition.
The buyout sum typically includes your outstanding invoices minus reserves, along with any additional fees. A clear breakdown from your old financier is essential for understanding any extra costs or early termination fees, helping you decide if the new agreement is more advantageous.
Transitioning can be cost-neutral by using new invoices for your new financier. Be cautious about re-submitting previously financed invoices, as it could lead to double fees. Some financiers offer discounts, but always communicate timely with your previous provider to avoid unnecessary charges.
Switching may slightly prolong the usual process due to the buyout computations and necessary approvals. An experienced company can make this transition smoother for you.
In certain scenarios, both your old and new financiers might temporarily share rights to your invoices. However, this arrangement is typically not standard practice.
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Don't wait long periods for a loan. Many of our factoring deals can take place in as little as 24 to 48 hours. If you need capital right now or are looking to expand then factoring is the way to go. We work on your time instead of you working on a bank's schedule.
If you need cash and you're sitting on a lot of unpaid invoices then factoring with us is the way to go. We'll give you the cash that your business needs and collect from your customers.
Debt is risky while at the same time being beneficial to growing a business. Start-ups can relieve themselves of the risk of debt and still create capital with factoring.
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