Changing factors

Changing factors

Changing factors is not as daunting as you may think.

There could be a number of reasons why you should change from your existing factor such as service problems or you think you are paying too much for your present invoice factoring or invoice discounting agreement.

Take advantage of our free initial consultation and assessment service, which is totally confidential, and find out what your options are.

Our experienced business advisors will assess your options and guide you through the process from start to finish.

We are also able to negotiate with your existing factor and assist with any operational problems you may have, so it’s always worthwhile speaking to us.

Making the change

The first thing to do is check the terms and conditions of your existing agreement including notice periods. This is an important part of the changeover process we can assist with and advise on the key aspects involved. Changing your factor involves the new factoring company paying off the old factoring company. This is called a ‘liftout’.

A Liftout Agreement is prepared and signed by all three parties involved which is your company, the new factoring company and the old factoring company. This ensures there are no misunderstandings and timescales can be achieved.

What’s the cost

You need to submit new invoices to the new factoring company to enable them to pay off the old factoring company. If this is done there is no additional cost in changing.

It’s important to give proper termination notice to the old factor to avoid penalty fees. If there are potential costs to be incurred on this front we can negotiate on your behalf to minimise any fees involved.

Contact us

For more information on changing factors email us here and one of our consultants will call you back immediately.

Remember there’s no cost for initial consultations and assessments so give us a call, we look forward to hearing from you.