Everything you need to know before changing funding provider

Switching your invoice finance provider is a decision that demands thorough consideration. Various factors might lead you to explore a different funding option for your recruitment agency, but what should you contemplate before proceeding?

Here are some things to keep front of mind when changing your existing provider

1. Analyse your current financing agreement: Before making the switch, carefully review your current financing arrangement with your existing provider. Understand any prepayment penalties, termination fees or other clauses that may impact your decision to switch. 

2. Research new funder providers: Explore and compare different providers to find one that offers the best options, plus terms and conditions for your agency. This may include factors such as interest rates, fees, repayment terms, and customer service. Service levels and customer approach can vary considerably between providers, so ensure you have considered how well you can work together day-to-day.

3. Consider the impact on your clients: Changing funding provider may impact your clients, especially if they have established relationships with your current provider. Ensure that you communicate the change to your clients in a transparent manner to avoid any misunderstandings or disruptions to their experience.

4. Evaluate the transition process: Assess the transition process from your current funder provider to the new provider. Ensure that you understand the timeline, costs, and responsibilities involved, and that you have support and guidance from your new provider throughout the stages. This should be a well-communicated process and have minimal disruption to your arrangement.

5. Protect your business: Ensure that you have appropriate legal and financial advice to protect your recruitment agency through the transition process. This includes reviewing the new financing agreement and understanding any potential risks or liabilities. All appropriate information should be clearly explained and presented to you.

Learn more about CashFlo here

Overall, changing your funder provider can provide significant benefits for your recruitment agency, including improved financing terms and conditions, and a better suited, tailored service. However, it is essential to fully evaluate the decision and consider the impact on your clients and business, before making the switch.

At Flo we offer a transparent and straightforward funding solution for temporary recruitment agencies, making our client lives easier. We have no hidden fees or add-ons for you to consider, simply a small percentage to pay on invoices and up to 100% of the invoice paid to you quickly. 01827 438065 or send us a message for more information.