Many people don’t know that it is possible to top up your funding from an invoice finance company, or bank, with funding from a second invoice finance company, by splitting your sales ledger between the two funders. Different providers take different approaches to the risk that they will accept so you may have certain sales that are not funded by your primary provider. You might need a temporary cash flow boost and once again a second financier may be able to provide this, on top of your regular facilities, whilst leaving them in place.
There have been a number of new selective invoice finance companies entering the market over the last few years. At Accountex I met another entrant to that marketspace, Growth Street, who have been duly added to our list of IF companies.
There is now so much choice within the selective IF market that customer will have difficulty making a choice – and as we see time and time again, its not just about who is the cheapest.
We had a meeting with one of our single invoice finance providers the other day and they happened to mention that they often provided credit control for the client, free of charge. What a great benefit! You are only paying for the funding but you are getting a collections support service for free – not all selective services are created equal.
Personal guarantees are essential with some sales financiers, however that is not the case for all of them. There are funders on our panel that will provide facilities without personal guarantees (in some cases) or with very limited PGs e.g. for 10-20% of the value of the funding. If you are looking for funding without PGs please speak to Sean on: 03330 113622.
Many are not aware that some of our funding partners are happy to fund #hotel bills to corporate customers. This can be helpful with the cash flow of a hotel as often they will have to wait for their corporate accounts to settle their corporate accounts so they get paid for all the bills that their staff have run up. The funding will bridge that gap.
When I started in factoring at Barclays, service only factoring deals were the holy grail in terms of new clients.
A service only customer didn’t need any funding, so there was no risk of loss to the factoring company. Hence, these were the most desirable of clients. This no longer seems to be the case!
We have had several instances where customers have contacted us for credit control service only, one very recently. However, many of the factoring companies are reluctant to get involved as they have become so focused on funding. We even had an instance where the factors agreement now requires a funding payment to be made to the client in order to activate the agreement, hence they don’t want to get involved with service only factoring.
This is not the first time we have had such issues, so we have taken the step of forging new relationships with companies that can provide just a credit control service without any funding, get in touch if you need more details.
Who is the “Best Invoice Finance Company?”. When we have meetings with funders they always ask “who do you give all your business too?”, the answer is that we do business with a broad range of different industry providers as no one has the perfect solution for every client.
This was further evidenced recently with two situations. One company was using one of the industry’s leading products, a product that has won all sorts of awards and is backed by a household brand. That company chose to move to a small, new start invoice finance company.
Another company was using a selective invoice finance facility, that many providers would have you believe is the panacea of all invoice finance services, and they have moved to a a banked backed sales financing company, for a whole turnover facility.
There is no one service or provider that fits everyone, it depends very much upon your needs and that is what we focus on. Understanding what our client’s need and matching them to an invoice finance company that can provide the best service for them.
If you need help, have a no obligation chat with Sean on: 03330 113622.
An example of the pricing for a #construction finance deal has been added to the #FundInvoice site. Pricing will vary depending upon your particular circumstances but it gives you an example of the pricing for a reasonable sized client: Construction Finance Pricing
An #construction sector article by the London School of Business quotes KPMG and Markit research as showing the lowest demand for worker in the construction sector since May 2015. The article also points out the rise in staffing costs, which will undoubtedly being putting additional pressure on the cash flow of construction companies.
Slow payments still plague the construction sector, and our research shows that 85% of construction businesses say they would benefit from getting paid immediately instead of waiting for applications for payment (used by 75% of the sector) or sales invoices, to be paid. Many are unaware that they could get their applications for payment funded immediately, 45% have never heard of such a product, and that they could use that funding to pay staff costs or for raw materials.