- 31 Jul
Invoice Discounting For An Electric Bicycle Distributor
Electric bicycles, or e-bikes, are a fast growing market, as many people seeking to live a greener life and replace their journey to work in a petrol or diesel powered car, with something less polluting.
We were recently able to arrange a confidential invoice discounting facility for a UK based distributor of electric bicycles, in order to support their future growth.
How Confidential Invoice Discounting Works
A confidential invoice discounting facility (also called CID for short) is a form of invoice funding that releases cash from unpaid invoices, that you have raised to your customers, on credit terms. It means that you can continue to offer your customers a credit account facility, whilst receiving most of the invoice value immediately that you raise the invoices. The discounter provides what we call a "prepayment" against your invoices. You receive the balance, less charges, once your customer pays.
There are lots of different types of invoice discounting, but CID tends to be offered to more established businesses, that want to retain their credit control activity in-house.
CID allows you to retain control of your credit control activity. You chase your customers for payment, so the funder is not involved with that process, as they would be if you were to use a factoring style facility. The facility is "confidential", so there are no assignment clauses on invoices, and no calls, or letters, to debtors in the name of the funder (during the normal course of business) and your customers will therefore not be aware of the involvement of the funder.
Electric Bicycles (E-Bikes)
An electric bicycle, or e-bike, is a motor assisted bike that reduces the need for the rider to pedal. The *growth of e-bikes in Europe has increased significantly recently, from c. 100K units pa in 2006 up to c. 1.6m units pa in 2016. With a focus on greener travel, the high growth curve trend looks set to continue.
The batteries used can vary, but lithium-ion (similar to those you would use in a laptop or mobile phone) are the most popular. A typical electric bike will produce c. 350 to 500 watts of power (about the same as that needed to power a garden strimmer).
E-bikes can be divided into 2 types:
- "Full-power" - whereby the user provides minimal pedalling and relies heavily on on the electric function. This can lead to a more limited range of c. 10 to 20 miles.
- "Power-assisted" - which is similar to a hybrid car. The bike is designed such that you pedal a lot, but are powered when you need help e.g. up hills.
*Source: European growth in e-bike sales courtesy of explainthatstuff.com
- 15 Jul
Replace Your Cancelled Invoice Finance Facility
We have just been able to help a small steel fabrication business that were are using a selective invoice finance company, that wanted to cancel their invoice financing facility.The business deals with a number of construction sector customers, and hence a lot of their sales are billed via applications for payment, rather than invoices. The use of applications for payment, which is commonplace in...
- 30 Apr
30K Business Loan For A Vending Machine Supplier.
Vending machines is one of the diverse sectors that we have been able to assist recently. We recently helped a supplier of vending machines arrange a long term business loan. The loan was for £30,000 over a long term, which will provide a significant capital injection for their company.MORE INFORMATION ON BUSINESS LOANSWhilst this was a relatively modest loan, we are able to help arrange much...
- 17 Apr
Diverse Trades That We Have Found Funding
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- 29 Mar
Overcoming Constant Changes Of Client Manager
Service problems are rare in the invoice finance sector, but when they do arise, we have had some success helping clients solve service problems.REQUEST A CALL IN CONFIDENCEWe have just assisted a client who was using a bank owned invoice finance company, but they had suffered continual staff changes. After having the same Client Manager, the individual - often called a Relationship Manager - for...
- 04 Mar
Savings On Factoring For A Recruitment Company
Interesting recent case where a potential cost saving has been identified for a medium sized recruitment company, currently using non recourse factoring.The prospect was using a non recourse factoring service (which can have its benefits), from a large provider, but they were seeking a cost reduction exercise, and they wanted a better service. They felt that the provider was no longer keen on...
- 15 Oct
Credit Control For A Small Construction Estimating Business
We have just completed a credit control only facility for an estimating business that handles:DISCUSS A CREDIT CONTROL QUOTEThis firm of estimators were originally with a large high street bank, who have an invoice finance arm, but as the bank have withdrawn their debtor protection this client needed to look for a new provider. The facility that they had received from the bank was factoring but...
- 26 Jul
Selective Invoice Finance For Installation Of Car Charging Points
This case study concerns a client in a very different industry sector that we were able to find a selective invoice finance facility.GET A FUNDING QUOTEThe small business was an installer involved with the installation of car charging points for electric cars. They also undertook some solar panel installation, under the Government's green deal scheme.Car charging points, for electric cars, are...