Frequently Asked Questions and Answers
Frequently asked questions
How does Factor Compare work?
Factor Compare is part of Sterling Capital Reserve Limited, one of the leading independent commercial finance brokers in the Midlands specialising in brokering Sales Ledger Finance. Please complete our Comparison Enquiry Form to take matters further.
How does Factor Compare use the information I have supplied?
From the information you supply, we will then search the market to compare and contrast what is available to meet your needs.
We will then contact you to discuss the illustrations received from the providers. If you are happy to take matters forward, we will then ask the provider to contact you to arrange a meeting.
Is there a cost to use Factor Compare?
Factor Compare does not charge you a fee. Should you decide to proceed, we will receive a commission payment from the provider.
Am I committed to proceed with one of the providers?
No. You are only requesting an illustration from providers. If you do not think the solutions suggested are right for your business then you can walk away.
What is the process involved?
To start the process simply complete our Comparison Enquiry Form
After acknowledging your email, we will then use this information to compare the market on your behalf and find providers that will suit your circumstances. We may contact you at this stage if we need to clarify any matters.
The lenders at this stage will be asked to provide illustrations based on the information provided. When these are received, we will then contact you to discuss your requirements in more detail.
If you wish to take matters forward we will then arrange for the lender/lenders to contact you to arrange a meeting to discuss your application formally.
Subject to you and the lender being happy with the proposition, the lender will then complete the legal paperwork and make funds available for you to draw down.
If we are currently factoring with another company, can we move to another provider?
Yes, you can move to another provider. However, you should check your Invoice Finance agreement to see whether you are subject to any minimum contract term and whether there are any penalties to break the agreement.
What security do I need to provide?
In essence the factoring company is proving you with cash in exchange for an assignment over your sales invoices. When your customers settle their invoices the money is used to repay the borrowing.
Depending on your circumstances some factors may require additional security, such as personal guarantees or security over property. Security requirements will form part of your discussions with the factor and will be set out in any terms of agreement issued.
What is the process for cancelling my factoring facility?
You will need to contact your factoring provider to advise them of the cancellation and comply with any notice period or minimum contract term. They will then provide you with an amount that is required to repay them to cancel the facility.
Is it possible, to borrow more?
Yes. An invoice finance facility is very flexible and the amount you can borrow will be linked to the growth in your sales ledger as you sell more.
There are certain times when lenders may be able to make an overpayment to you when your cash flow is stretched. This can occur when your business needs to pay a tax bill or you are affected by seasonal trading.
Do invoice finance companies lend to businesses in the construction industry?
Yes, we have access to lenders who are happy to consider most industries, including construction.
