Why You May Want to Switch Your Debtor Financing Company

Have you come across a debtor financing company that seems to be better than your current provider? Perhaps you’ve heard of the great deal a close business contact secured, or the level of service they’re receiving that seems nothing like what you are. It’s valid to think about changing your financing company when there might be better options on the table. Some of the most common reasons include unsatisfactory levels of service, high penalties or fees, transactions full of hassles, or simply because your needs are not being met anymore (eg: long wait times for funding approvals).

There’s nothing wrong with looking for a better debtor (or invoice) financing company. As a business owner, you need to look for ways to optimise your financial position and improve your operations. If you’re not yet fully confident that you should be making a change, we’ve prepared four key reasons that may convince you.

Reason #1: You want better customer service

Your current debtor financing company may not be completely attentive to your needs. Deficiencies might be subtle at first; perhaps it is a missed phone call, a slight delay in funding, or an unanswered email. Poor customer service is not acceptable in the long term. Minor issues now are usually a sign of more problems to come. There are debtor finance companies out there that will take care of you and your business without the same hassle you may be experiencing now.

An excellent company has tools that will help you monitor the credit of your customers. If they don’t have this, you will have a more challenging time dealing with clients who pay their bills late, which will, in turn, puts risk on your business in the event of your client going into insolvency. Providers should be accessible when you need them – debtor finance may be the blood flow of your business’s cash flow, so it needs to be readily available when you require it most.

Reason #2: You want an increasingly seamless experience

Business owners have a lot on their plate. It makes a meaningful difference if the funding process of your current financing company is customer-friendly and seamless. How do they fare? Access to your account manager without waiting days for them to respond to you. Does your debtor financing company allow you to view information that reflects real-time entries? Is their system easy to navigate, or better yet, can it be integrated into your own accounting system? If you find yourself having a hard time transacting all the time, it’s time to rethink your options.

Reason #3: You want a more transparent provider

The low rates advertised by some financing companies may come with many hidden charges and fees. This same concept applies to many debtor finance providers. There may be monthly fees, banking fees, refactoring fees, late payment fees, application fees and the list goes on, ensure they are fully disclosed, as these costs contribute to your overall monthly funding costs – headline interest rate often doesn’t mean much. When looking out for a new provider, dive deep to ensure they are entirely transparent. If they’re willing to hide fees from you now, what will they try to get away with down the track?

Reason #4: You want faster funding

Does your debtor finance company only fund you once or twice a week? Some businesses require faster funding and, even if you don’t, you should expect it anyway. If your demands are not being met due to slow transactions (whether that’s processing time or operational policy), you should instead opt for a company that can offer funding to your bank account daily (if not twice a day). Don’t be afraid to switch companies as everyday you wait for your funds is fees and charges they make off you. Don’t settle for one size fits all.

Things to ask before deciding on a debtor financing company

You’re likely opting for alternative financing because banks have tighter credit standards and are harder to deal with. Debtor finance is also a quicker, more convenient solution to improve your cash flow, the amount of funds you can access is usually more than a loan, you dont need to provide property security and the more you invoice the more funds you can access. Make sure that you understand exactly what the company is offering to evaluate whether you are going to receive the quality you deserve and the product to suite your needs. Ask yourself these questions before signing any contract:

  • How transparent is the contract (is every fee and charge disclosed)?
  • Does the financing company match your funding cycle needs?
  • Are there any hidden charges?
  • What are the advance rates specific to your industry (this can vary from 70% to 95%)?
  • How much flexibility does the company provide?
  • Is there a monthly minimum amount that you need to finance or a minimum monthly fee you need to pay?
  • Are you satisfied with the total rate that the company is offering you? 
  • Is it a disclosed or undisclosed facility?
  • What has been their turn around time from first speaking to them until receiving their funding offer – long time frames often reflect what their ongoing customer service will be like.

Business owners don’t need extra headaches when it comes to their financing. Evaluate your business’s funding needs today so you can choose the right debtor financing solution for your business. OptiPay is a friendly, expert debtor financing partner for your financing needs. We provide the cash you need from $100,000 to $6.0 million, without any hidden charges. Partner with us, grow your business, and get a flexible financing solution fast!

Who is OptiPay?

OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges  for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoringinvoice financedebtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.

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