Case Study - 42% Cost Saving Via FundingVoice Magazine
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FundingVoice magazine is our free, monthly invoice finance magazine that keeps subscribers up to date with our latest offers. One of our subscribers recently made a huge cost saving after contacting us after receiving the publication.
We were able to make a significant saving for a client of c. 42% on existing combined service charge and discount charge (exlcuding other fees), by moving them to a CHOCs facility. This particular client was using a bank owned factoring company who were providing what is known as a "light touch" credit control service.
"Light Touch" Credit Control
Light touch normally means that the provider only chases the most significant debtor accounts on the sales ledger of a customer. This can mean that only the top 10 debtors, or so, are being chased by phone, in addition to paperbased chasing on the rest sales ledger. Unlike a full factoring service this means that the customer has to undertake the majority of the credit control activity themselves.
CHOCs - "Customer Handles Own Collections"
A bit more jargon! CHOCS means "customer handles own collections", this is an alternative form of invoice finance where by the customer is responsible for all the credit control activity, hence it can be priced accordingly. Our client wanted a number of competitive quotes, so we found him 3 quotes for CHOCs, all of which would have been cheaper than his existing bank deal. He selected one provider that could potentially save him circa. 42% of the combined service charge and discount charge (excluding other charges). A huge saving but also a product that very clearly empowers our client to conduct his own credit control and to keep control of the relationship with his debtors. This avoids any cross over from having multiple parties chasing debtors for payment.