Changing Invoice Finance Providers

How to change your invoice finance company

To change invoice finance companies the old factor must be paid off by the new factor. This is called a "liftout".

The Liftout Agreement

The Liftout Agreement outlines the transition process and is a three party agreement signed by the old invoice finance company, new invoice finance company and your company. In the Liftout Agreement you approve the "liftout figure" provided by the old invoice finance company.

How much does the liftout cost?

If you are able to submit brand new invoices to the new invoice finance company which they can use to payoff the outstanding invoices at your old factor then there would be no additional cost to you to make the change.

If you want to use the existing invoices that have already been factored then you can negotiate a one off fee.

Depending on the size of the transaction, some invoice finance companies offer reduced fees on old invoices which are part of a buyout. You also want to make sure you give the proper notice of intent to terminate to your old factor (if required) to avoid any early termination fees to leave their contract early.

How long does a liftout take?

When you are changing invoice finance companies it's best to plan on the first funding taking a two to three more days than the normal invoice finance application setup process. The added days will be needed at the time of invoice verification and just before funding as liftout figures are calculated and sent to you for your approval.

Contact Ashley Commercial Finance

To change or discuss contact Ashley by phone on 0161 233 6380 or send us an email on enquiries@ashleyfinance.co.uk.

Register your interest in changing factors

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About Ashley

Ashley Commercial Finance have been providing invoice finance services for all types of businesses since 1994. We have helped thousands of clients across a vast range of businesses including commercial printers, security guards, taxis, temporary staff agencies, recruitment.

Our independence and lack of bureaucracy means that funding can be in place for new clients within 24 hours of receiving sales invoices. We do not charge 'up front fees' for a free no obligation quotation.

Also, unlike many other invoice finance companies we allow clients to choose which customers we deal with, thus avoiding paying unnecessary fees.

While the high street banks are restricting financing for small business loans and overdrafts, invoice finance sometimes called invoice factoring and invoice discounting will continue to fill this cash flow need and ultimately expand or replace the banks role with small businesses.

Ashley are the friend of the smaller business through good times and bad!