- 19 Aug
Invoice Finance Or Factoring With No Minimum Criteria
In the past, there were minimum size criteria applied to businesses that were seeking invoice finance or factoring. Different providers would set the minimum size criterion at different levels, but used to reflect a fairly substantial volume of turnover, in order to make a facility viable.
Selective Invoice Finance Without Minimum Criteria
This practice is no longer the norm in all cases, with the emergence of selective invoice finance. A selective facility works in such a way that it gives the customer ability to choose invoices that they wish to receive prepayments against, and wish to receive a credit control service for - in the case of spot factoring.
This means that there really are no minimum criteria anymore, for the size of turnover or number of invoices to be discounted. Most selective invoice finance providers operate in a way that allows the customer to terminate the facility at any time. So that means that you could discount a single invoice, and never use the service again. Some providers charge a set up fee, although this is not always the case, which warrants then putting the facility in place even if it is not regularly used.
This means that even when we receive enquiries from small companies, turning over very small volumes, even new start ups, we are confident that we will be able to find them some form of funding.
Minimum monthly fees are still used by many of the whole turnover invoice finance companies. However, our research has shown that there are dramatic differences between the approach taken and the levels at which these minimum fees are set, by different providers.
- 31 Jan
Producing A Business Plan To Support Your Finance Application
We were just talking about the number of new applications for business finance that we are seeing but commented how suprising it is, the number of companies that apply for facilities of £250K+ or more, without providing any kind of business plan.We regularly see applications without a business plan, financial projections or forecasts being provided to the finance company that the prospect are...
- 30 Dec
Invoice Finance Termination Guide
Termination is the process by which either an invoice finance company, or their client terminates the receivables finance facility that exists between them. The circumstances under which termination occurs can vary, and are explained in this guide to invoice finance termination.This invoice finance termination guide is intended to help companies that have been given notice of termination by...
- 12 Aug
Factoring Can Improve Profitability
Most people may assume that invoice factoring will come at a cost, and hence will reduce your profitability, however the opposite may be true.Using factoring may actually increase your profits and business' profitability. I noticed an interesting post the other day, suggesting that factoring can actually help your company become profitable, so I wanted to set out how that might work.This is...
- 12 Jul
Do You Need An Invoice Finance Sales Visit?
Times have changed, when I worked for the invoice financing arm of Barclays, our sales people always visited new prospective clients, and these visits were the conduit to acquiring new business.The titles of the sales team vary between organisations, for example, "Business Development Manager", "Business Development Director" and "Sales Manager/Director" are often used interchangeably - but the...
- 29 Apr
Guide To Moving Invoice Finance Companies
Moving invoice finance companies is something that clients can be very cautious about, often because they anticipate a lot of hassle and paperwork. That will not necessarily be the case, especially if you don't have hundreds of customers, but we have researched what customers often fear might happen when they move providers, so that we can put those fears to rest.We have also put together this...
- 20 Feb
Invoice Finance For Security Companies
Security companies that are providing manned guarding services often have significant payroll obligations to meet in order to pay their staff, in many cases before being paid for the jobs that their staff are undertaking. In some cases staff have to paid weekly, whilst customers expect to enjoy credit terms of 30 days or even more.The gap between having to pay staff and getting paid by customers...
- 16 Jul
A List Of All The Methods Of Funding A Business
If you are starting a business, or you need more capital to expand an existing business, you may be interested in understanding the full list of all the funding options that are available to you. Below I have compiled a list of all the methods of funding a business in the UK.FIND OUT ABOUT THE OPTIONS WE CAN HELP WITHThere will be many products that fit under each of these categories, however I...