How to change your factoring company

To change factoring 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 factoring company, new factoring company and your company. In the Liftout Agreement you approve the "liftout figure" provided by the old factoring company.

How much does the liftout cost?

If you are able to submit brand new invoices to the new factoring 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 factoring 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 factoring companies it's best to plan on the first funding taking a two to three more days than the normal factoring 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 Factoring by phone on 0161 741 7410 or send us an email on enquiries@ashleyfinance.co.uk.