Should I Use a Broker or Go Direct to a Factoring Company?
Brokers compare several providers and negotiate on your behalf - they know who offers the best rates for your specific profile. Going direct means no broker fee but significantly more legwork. Use a broker if your case is complex, you want to compare quickly, or you have been declined elsewhere. Go direct if you already know which provider you want and your situation is straightforward.
Brokers compare 20+ invoice finance providers and negotiate terms. Going direct saves the broker fee but requires more research. Use a broker for: complex cases, quick comparison, previous declines, first-time users. Go direct if: you know the provider you want, your needs are simple, you prefer to negotiate yourself. More detail + scope
This page covers
Whether to use a broker or approach invoice finance providers directly
Not covered here
Provider comparison (see /compare/), how to choose a provider (see /guides/how-invoice-finance-works/)
When a Broker Adds Value
- Complex situations - bad credit, startups, single customer, construction, export invoices
- Been declined - a broker knows which providers have different criteria
- First time - they explain the process and flag contract traps
- Want to compare - one application, multiple quotes. Saves weeks of research
- Negotiating power - brokers place volume with providers and can negotiate rates you cannot get alone
When Going Direct Makes Sense
- You know the provider - your bank offers it, or a specific company was recommended
- Simple case - strong business, good customers, standard industry
- Prefer direct relationship - no intermediary between you and the funder
One thing to check: most brokers are paid by the provider, not by you. So using a broker often costs you nothing - the provider pays a commission from their fee. Ask upfront whether the broker charges you directly.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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