Switching from your current invoice finance provider
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.
For help in making the switch away from your current invoice finance provider conact us on 0161 233 6380 or email firstname.lastname@example.org