- 27 Sep
Funding Against Excluded Debt
Are you missing out on vital funding due to exclusions from your receivables financing facility? It often happens that some sales will be treated as "exclusions" from a facility. This can also be called "not notified", "non notified", "unapproved" or "disapproved" - all of which mean that you don't get funding against those sales. This can reduce the availability generated by your facility.
Funding Excluded Debt
In an email just received from our funding partners at Marketinvoice, they describe a problem that they regularly come across, whereby clients are having their funding limited due to debts being excluded from a facility provided by another invoice financier.
Debts are often excluded from factoring or CID facilities for various reasons including: export sales (sales may be in foreign currency or to overseas debtors), extended credit payment terms or that the nature of the sales falls outside of the incumbent funders risk criteria (for example if some sales are contractual in nature).
Selective Invoice Discounting (SID)
The solution that Marketinvoice can offer is to leave the existing invoice finance arrangement in place, and fund solely against those excluded debts. This could create additional cash flow for a company, without the need to transfer your existing arrangements. This would avoid any hassle associated with moving providers.
Marketinvoice will carve out this excluded debt and fund it on a Selective Invoice Discounting (SID) basis, providing the existing funder gives permission for them to fund the debt, and undertakes not to fund the debt themselves.
There are also other providers that are prepared to offer this kind of arrangement, if Marketinvoice are unable to accept a particular debt. Please call Sean on 03330 113622 for assistance.