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Procurement Market Intelligence Report

Invoice Factoring Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Invoice Factoring?

What is the average price of Invoice Factoring?

This procurement report includes pricing information to help you purchase Invoice Factoring. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Invoice Factoring been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Invoice Factoring yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Invoice Factoring?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Invoice Factoring with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase Invoice Factoring?

Market share concentration in the invoice factoring market is low, with the top four providers generating less than 30.0% of revenue. About 770 vendors operate in the market, including both specialized and diversified providers. Diversified providers, like Wells Fargo, tend to be larger and control a greater share of the... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Customer Service

Do you provide 24/7 customer support?

How quickly do you respond to client inquiries on average?

Do you assign dedicated account managers to each of your clients?

What is your retention rate for your clients and how many choose spot factoring over signing a long-term contract?

Privacy & Confidentiality

What will you do to protect the private or confidential information in our schedule of accounts?

Have you ever had any data breaches that compromised client information?

If you have had a data breach in the past, how did you respond to it and how have you improved your security?

If there is a data breach, do you contact my company’s clients listed in the schedule of accounts directly? If so, how do you ensure that you do not disrupt our relationship with our clients?

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Key elements for every RFP

What should my Invoice Factoring RFP include?

Project Budget

Buyers should indicate the value of the contract, if possible.

Buyers should specify which services they expect to be included in the service agreement and which services they will pay additional fees for.

Buyers should reference the Benchmark Price section of this report to confirm that they are paying a competitive rate for market services.

Selection Criteria

Buyers should evaluate providers based on the advance rate and reserve they offer.

Buyers should consider the level of service vendors offer.

Buyers should evaluate providers based on their payment timelines.

Buyers should consider the contract terms that providers offer.

Buyers should reference the Buying-Decision Scorecard section of this report for a detailed discussion of selection criteria to consider during the purchasing process.

Project Schedule

Buyers should indicate the due date for proposals.

Buyers should say when contract awards will be announced.

Buyers should state when services must begin.

Buyers should specify any preferences they have regarding contract length.

Evaluate major factors to mitigate risk

How risky is the Invoice Factoring supply chain?

Providers in the invoice factoring market have faced moderate supply chain risk in the three years to 2018. This level of risk indicates that providers have a heightened chance of encountering supply chain disruptions, which could increase their expenses or prevent them from delivering services. Moderate supply chain risk may... Subscribe to learn more.

HIGH

MEDIUM

LOW