Invoice Factoring Recommendations

[smallbusinessdan]

If you are going to include some kind of insurance, then it might be worth it - ie. you advance the money and if the agency / client doesn't pay then it's your problem to chase the debt not mine.

Depending on the size of the client / agency, once you've been trading for a while and built up a bank balance, is there any real need to pay someone 3% for better terms? I'm direct at the moment and my contract says 60 day terms, but the client generally pays in half that time, and I know they're good for the money so I don't worry. If they were smaller, then I wouldn't have agreed those terms anyway.

Not convinced that there is much need for it, to be honest. But you could look at the financials of other people already in this space and see how they are doing before making the leap.

FaQQer - Yes, we offering full Debtor Protection insurance backed by one of the big 5 banks. We'll also do all the invoicing and the credit control straight from the time sheet - Ultimately we are looking to give as much value to contractors as possible, for the smallest possible time investment. Worth noting that the 3% is tax deductible, so the real cost is lower than 3%.

It sounds like you're a sophisticated business person, with a good knowledge of these things so thank you sincerely for helping me and giving your insight.

Quick thought - If it were cheaper would you consider it an attractive proposition ?


Thanks

[TheFaQQer]

FaQQer - Yes, we offering full Debtor Protection insurance backed by one of the big 5 banks. We'll also do all the invoicing and the credit control straight from the time sheet - Ultimately we are looking to give as much value to contractors as possible, for the smallest possible time investment. Worth noting that the 3% is tax deductible, so the real cost is lower than 3%.

It sounds like you're a sophisticated business person, with a good knowledge of these things so thank you sincerely for helping me and giving your insight.

Quick thought - If it were cheaper would you consider it an attractive proposition ?


Thanks

Rather than looking at the contractor base who work via agencies, you might be better off looking at those who work direct. For 3% getting the guaranteed payment quicker, that's a price that many would think worth paying.

To be honest, anything less than 3% you might even run the risk that people think it's too good to be true, and that you won't just disappear with the money.

[smallbusinessdan]

Rather than looking at the contractor base who work via agencies, you might be better off looking at those who work direct. For 3% getting the guaranteed payment quicker, that's a price that many would think worth paying.

To be honest, anything less than 3% you might even run the risk that people think it's too good to be true, and that you won't just disappear with the money.

Direct contractors are hopefully going to be one of our big target audiences, but I probably hadn't considered the significance of Debtor Protection in the proposition. You also make an interesting point on too low pricing, I hadn't even thought of it that way.

You have been a real help, thank you.

Daniel

[TykeMerc]

Rather than looking at the contractor base who work via agencies, you might be better off looking at those who work direct. For 3% getting the guaranteed payment quicker, that's a price that many would think worth paying.

To be honest, anything less than 3% you might even run the risk that people think it's too good to be true, and that you won't just disappear with the money.

That's true, what's probably a sizable majority of us on here contract via agencies so have a built in Factor already, just some people don't realise it.

For people who aren't using agencies or do a fair bit of client direct work it's a matter of pricing and protection, add enough value and you've a market, not enough and it's a no business scenario.