Frequently Asked Questions: Transferring Funding Providers

Why would you change funding providers?

There are a few reasons that you may consider transferring your current funding provider, here are some of the main ones:

Your current deal is not cost effective

It’s no secret that you need to pay your invoice finance provider for their services. With a percentage of each invoice value going to the provider, some of the bigger invoice finance providers only give you an agreed percentage of your invoice value in advance, typically 75% – 90%.  The consequences of this will be a shortcoming of profit, and your margins will be squeezed with some of your clients.

• Lack of visibility or out of date tech. Throughout the industry there are many variants of the platforms that funders provide for their agency partners. We hear all the time of business owners that are tired of not being able to access their sales ledger, easily view aged debt or who don’t have a back-office dashboard that is easy to navigate.
  
  Quba’s DynamiQ dashboard has been created purely for the recruitment industry. It highlights key data such as debt, margin, and consultant commission but will also allow you to run reports as mentioned above with real time information. Alongside this we now have an agency branded e-Timesheet app. Both end clients and candidates can download from the app store, fully integrated with the DynamiQ dash.

• Bloated fees and hidden costs. Depending on your current financier, you may be getting charged additional fees that you wouldn’t need to pay elsewhere. Monthly minimum fees, set up fees, credit check costs, auditing fees and extra fees for processing same-day payments. These are just a selection that we have come across in the market. Quba Solutions charge one set percentage. This includes comprehensive debt protection, and we don’t [and never will] charge additional, hidden fees.
  

How easy is it to transfer debt from one provider to another?

• Many agencies may refrain from changing their funding provider due to the perceived difficulties in transferring their sales ledger and business, particularly bigger businesses.
  
  In reality, the transferring of debt from one provider to another is a straightforward process as long as all parties involved follow the correct process.

What is the transfer process? What is involved?

• Transferring from one funding provider to another involves the transfer of your entire debt book. As well as all outstanding invoices and timesheets relating to that debt. Generally, your new provider will liaise with your existing provider with the intention of purchasing your outstanding ledger. Depending on the amount of debt, the new funding provider will arrange for an independent audit of the ledger.
  
  For example, if you have a clean outstanding debt book of £50,000 with Funder A, your new provider, Funder B, would pay Funder A £50,000 to take ownership of the debt book. Funder B would then collect the outstanding debt from your client and provide funding moving forward.

How do Quba approach funding and debt transfer?

• We are very experienced in transferring debt from another provider over to Quba. We follow the ABFA procedure for transferring debt and have skilled auditors available at short notice whenever required.
  
  Our direct experience as recruiters means that we understand the impact that a transfer can have. As a result, we take proactive steps to keep your day-to-day operations running smoothly and without disruption. We handle most of the work behind the scenes, ensuring your clients remain unaware until the appropriate time. We provide you with the relevant documentation to pass to your clients at the right time. Letting them know of your change of funder, followed by introducing ourselves directly. You have a dedicated account manager and credit controller within our team. The relationships are quickly built with your clients, ensuring a seamless transfer process all round.

If you are interested in learning more about how to transfer your funding provisions and why Quba could be the right fit for you, drop us a line on 01305 233178 for a confidential chat.