Technology is changing every aspect of our modern lives. It seems that business owners and financial professionals who embrace new technologies are set to enjoy the demand of future generations, whilst those who do not, will enjoy early retirement. In the context of operating a small or medium business, ‘time’ becomes a crucial asset and modern technologies are saving business owners plenty of it. In modern society, people also expect a ‘flexible’ service, moving away from fixed-cost services and minimum term agreements to a more liquid, ‘pay as you go’ service.

Modern business owners are also conscious of ‘costs’ and cautious of hidden fees and charges. We see automation, flexibility and cost savings every day, from eBay, Uber, Spotify to Netflix. They’ve all drastically revolutionized their relevant industries so much, that it’s difficult to imagine life without them. Let's examine the impact technology is having on debtor finance and why more brokers than ever before are recommending modern alternatives.

It is the role of a commercial finance broker to assist their clients in obtaining funding for their businesses. Whether it’s working capital, buying a new warehouse, hiring new staff or any of an infinite number of reasons, brokers leverage their knowledge of all the lenders and products out there to select the most suitable product for their customers. It’s important that the broker gains the full trust of their client, as a poor recommendation may have detrimental repercussions and a great recommendation can solidify the relationship indefinitely. When a new financial product hits the market, it is important that the broker learns all they can about it, as it may be a better fit for an existing or future customer. Most business owners will choose a finance product based on three main drivers; time, flexibility & cost.

Automation is key to any successful business. The less time spent on laborious administrative tasks, the more time spent on improving and growing the company. Traditional invoice finance can add many hours of additional administration each week, and in some cases, a full-time resource is employed whose sole job it is to administer the paperwork for the invoice finance facility. A business owner would prefer that the staff member was doing something more productive with their time. The cost of a full-time employee should also be factored into the equation when considering costs. Modern invoice finance uses the existing data in the accounting package to remove the additional administration; no need to upload invoices or double reconcile customer payments. It goes even further by automatically populating any financial costs and pushing bank feeds into the accounting software. Modern technology allows the borrower to access capital without jumping through additional hoops and it’s very flexible.

Traditional invoice financiers are not only demanding of time but also demanding of commitment to terms which are not of this century. Contacting the recipients of invoices; minimum term contracts; minimum monthly fees and fees calculated on every invoice raised regardless of funds borrowed, doesn’t seem to fit in this modern era. 21st-century finance is confidential, selective, with no fixed period contracts or fixed costs and the rates are calculated only on what is borrowed.

The cost of financing invoices is no longer extortionate as it once was. In the past, if your business was not bank-grade creditworthy you would incur huge fees with a non-bank financier. The automation of modern invoice finance means that the lenders save a lot of time, which is passed on to the borrower in the form of cost saving. Also, modern invoice finance features no fixed costs and no fees calculated on the invoice value. The pricing structure is more akin to a bank overdraft but without the line fee.

More brokers are introducing their clients to a better way of doing business, saving them time, money and adding flexibility. Recommending modern invoice finance further solidifies their relationship.


Where does Waddle fit?

Waddle aligns to the Invoice Discounting model in that it’s a confidential facility, and thanks to its technology platform, Waddle is available to business of all sizes such as wholesaler Eclipse Organics, and it can be set up within 24 hours. Learn if Waddle is a good fit for you.

The ongoing use of the facility is simplified as the platform integrates seamlessly with the business’s existing accounting and back-office processes. See how Waddle compares to other types of invoice finance.


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