Transparency. Not always guaranteed in the world of invoice finance (factoring). We are proud to offer financing free of hidden costs, add-ons and ‘other’ fees.
When seeking a cash flow solution for your business, there is a range of finance providers from major banks, to local financing options. Before selecting your new cash flow partner, some due diligence is key to finding a solution that suits your business and ensures maximum profitability.
So ask the question about fees. Although they may seem small, over the course of a few months, they can quickly eat into your profits and increase the real costs of invoice factoring.
1. Set Up Fees
You haven’t even submitted your first invoice and you are being charged. This fee is usually applied to set up the facility and credit check your clients.
2. Annual Review Fee
“I have been on the same rate for the past two years and received no guidance on how my facility is performing for my business.”
Is the finance facility benefitting your business? Some providers charge this fee to conduct an account review to ensure your current facility is suited to your annual turnover and invoice / usage requirements.
3. Reminder Letter Fees
Clients need a reminder to pay their invoices. A hidden fee for a letter service could be charged, seems a little cheeky to us.
4. Collection Fees
You may have secured the cash flow from your invoice finance service. But you have to pay extra for their teams to collect on your invoice from your customer, at an additional cost.
5. Refactoring Fees
“I was charged £6,000 last year on refactoring charges.”
If your debt remains unpaid after a defined period (60 days), this hidden charge may kick in.
6. Bank Account Fee
Your bank account simply will not do, so you will be charged to set up a completely different account to support your finance facility. That monthly account fee associated with many bank accounts may also be passed onto you.
So what should you expect to pay?
GRENKE do not charge any of the hidden fees listed. Our pricing is simple:
// Fixed Fee - % of the invoice
// Variable Fee - % per day the money we finance / factor is outstanding.
"GRENKE proved to be very reasonable in their fees. They were also friendly and not at all pushy in their approach. We knew we were in safe hands with GRENKE." Aaron Vincent - Driven by Me Ltd
Want GRENKE to provide you a comparative quote on your current facility? Want more information on our pricing or fees? Speak to our team today.