Don’t choose a lender on the basis of the cheapest quote, as these are often not the cheapest in the long run due to hidden charges such as TT costs. Some lenders try to give more of an ‘all in’ price, which will tend to be higher, but in the long run will give you fewer nasty surprises.

It is also true to say that you get what you pay for and if you go for the cheapest rate you cannot expect a high degree of flexibility over advances if, for example, you are seeking a temporary additional advance, known as overpayment.

In factoring, a low service charge quote may actually cost you money in the long run in interest charges, as if the lender is inefficient at collecting in debts this will result in your borrowing money and therefore paying interest for longer than you need to.

While you undoubtedly need to obtain a number of quotes to test the market, we believe that the best approach is to identify a targeted shortlist of lenders who are likely to provide the services best suited to your needs and then to look at their comparative costs.

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