Don't be tricked!
We pride ourselves on our outstanding service and simple straightforward fee but beware when comparing fees and quotes, don't be tricked!
Some providers operate a multi charge system which can result in higher fees than anticipated such as:-
- Admin charges as a % of yours sales revenue
- Interest charges as a % on our outstanding debt
- Credit checking charges
- Set up charges
- Drawdown charges
- Bad debt protection charges
Can you see how difficult it will be to forecast and calculate what your fees will be?
Some of these charges are not always brought to your attention and are often "hidden" in a over complicated contract which is difficult to read.
Some providers also house within their contract the right to administer "admin charges" as and when they see fit.
Some providers charge their fee of your POST VAT sales revenue.
Some providers charge interest on your outstanding debt which offers the question - where is the incentive for them to be efficient at collecting your money?
Remember that the cheapest deal can often work out more expensive.
Important questions to pose to a prospective provider:
- Is the fee POST or PRE VAT of sales revenue? Press Article
- What is the breakdown of their charges?
- How good is their attention to detail, what processes are in place to ensure mistakes are not made?
- How efficient is their credit control, do they employ "real" credit controllers or "just send letters out"?
- What happens if you trade over your credit limit?
- What happens if your customer does not pay an invoice in 90 days?
- Should a customer not pay when is it taken off your profit margin?
- What happens if legal proceedings need to be actioned for non-payment?
- What happens if a customer goes bust?
- What are the bad debt protection excesses?
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How do we know about the "tricks" being played?
Some of our clients who have been with other providers have informed us of the service they received and the reasons why they had to move and more worryingly the negative and sometimes devastating impact it had on their business. Beware - don't be tricked!