Can You Move Invoice Finance Provider If You're Tied to a Contract?

Invoice finance can be a game-changer for businesses looking to improve cashflow, but what happens if your current provider no longer meets your needs? Many businesses worry that being locked into a contract with an invoice finance lender means they have no option to switch. However, while contracts may have exit clauses, it is often possible to move to a new provider that better suits your business.

Can You Move Invoice Finance Provider If You're Tied to a Contract?

Understanding Your Existing Contract Before You Move Invoice Finance Provider

Before making any decisions, it's crucial to review your current agreement. Most invoice finance contracts come with a minimum term, typically ranging from 12 months to several years. Additionally, some contracts include early termination fees or notice periods that must be adhered to before you can exit.

If you’re unsure about your contractual obligations, seek professional advice. Some lenders may have complex clauses that require careful navigation to avoid unexpected costs when switching.

Reasons to Consider Switching Providers

If you're thinking about moving to a new invoice finance provider, there are usually key reasons behind it. Common concerns include:

• High Fees: Your lender’s charges might not be competitive compared to other providers in the market.

• Poor Customer Service: Slow response times or lack of communication from your provider can disrupt your cashflow.

• Lack of Flexibility: If your current lender isn’t adapting to your growing business needs, a more flexible provider may be a better fit.

• Better Alternative Available: A different lender may offer improved funding rates, better contract terms, or additional benefits that align more closely with your business goals.

  
  

How to Switch Invoice Finance Providers

If you’ve determined that switching providers is the right move, follow these steps:

1. Check Your Contract Terms: Look for minimum contract lengths, exit fees, and notice periods. This will help you understand what’s required to end your current agreement.

2. Find a New Provider: Compare invoice finance lenders based on their rates, flexibility, service, and reputation. 12s Finance can help match you with the ideal provider based on your specific needs.

3. Discuss a Transition Plan: Work with both your existing and new lender to ensure a smooth transition. Some providers offer to cover exit fees or assist with contract termination.

4. Serve Notice Properly: If required, formally notify your current provider of your decision to leave. Ensure you meet all the terms outlined in your agreement.

5. Seamless Handover: Once everything is in place, your new lender can take over the financing of your invoices, ensuring your cash flow remains uninterrupted.

   
   

How 12s Finance Can Help

At 12s Finance, we specialise in helping businesses find the perfect invoice finance provider. If you feel trapped in your current agreement but want a better deal, we can help you assess your options and navigate the switching process with ease.

Don’t let an unsatisfactory finance arrangement hold your business back. Get in touch today to explore your options and find the best invoice finance provider for your needs.