Side by side
| Criterion | Bank-owned financier | Independent financier |
|---|
| Advance rate | Typically 80–85% | Often 85–90% |
| Discount margin | Usually lower | Slightly higher, more flexible |
| Concentration limits | Strict | Negotiable in the right sector |
| Onboarding speed | Three to six weeks | One to three weeks |
| Sector specialism | Generalist | Often construction, recruitment or export specialists |
| Contract length | 12–24 months, longer notice | Shorter terms more commonly available |
The nine things to compare
Advance rate; discount margin and the reference rate it sits over; service or administration fee as a percentage of turnover; minimum monthly fee; concentration limit per debtor; treatment of disputed or credit-noted invoices; recourse period; notice period and termination fees; and whether bad debt protection is included or optional.
Ask each provider for a worked illustration on your actual ledger for one month. That single comparison exposes more than any rate sheet.
Watch the exit
Notice periods of six to twelve months with termination fees are common and can trap a business in an uncompetitive facility. Negotiate the exit at the outset, when you have the most leverage.
Confidentiality and control
Confidential discounting requires the funder to be comfortable with your credit control. If you have a competent finance function, insist on it — disclosed factoring changes how customers experience your business.
The short answer
Compare the total monthly cost on your real ledger, then negotiate concentration limits and notice period before rate. Those terms usually matter more than the margin.
Questions
Can I switch provider mid-contract?
Yes, but check notice period and termination fees first. Refinancing between facilities is routine and the incoming provider usually manages the transfer.
Do you recommend one provider?
We shortlist providers whose criteria match your sector, jurisdiction and debtor profile, then present comparable terms side by side. No upfront fees apply.
Not sure which route fits? Describe the requirement once and we will structure it and approach the providers whose criteria match. No upfront fees — charges are due only once funding is in place.
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