I like to think that the major advantages of using the services of a specialist factoring broker like myself is that many of the factoring companies don’t perform as well as they claim and I know the market sufficiently well to steer companies away from the poorer performers.
Whilst some companies might approach me with this view in mind I’m sure that many would rather approach the factors directly believing that it would save them money on the basis that if I receive an introductory commission from the factoring company they would get a cheaper rate by going direct as the factor wouldn’t then have to pay me.
I received an email last night from a prospective client asking me to quote an approximate rate for his business. I spoke to my contact at the factoring company that I thought to be most appropriate who quoted me a rate which I subsequently emailed to the prospect.
I received a telephone call this morning from him saying that he wished to go ahead at the quoted rates but he was quite surprised when I told him which factoring company it was as he had already approached them directly and they had quoted a significantly higher rate.
It’s always better to use brokers in every industry. The most difficult part would be finding a broker you can trust.
Thank you Andrew. All one has to do to find a trustworthy factoring broker is to look under the Contact details in the right hand margin 🙂