Glenn Blackman | Invoice Finance, Factoring & Invoice Discounting

The Funding Alternative If Refused An Overdraft

Glenn — Fri, 03 Sep 2010 08:13:17 +0000

We are talking to a business that has been turned down and refused an overdraft by one of the high street banks as the business does not have any assets the bank will consider as security for an overdraft.

This is a typical example of a small business that is not yet asset rich but still needs working capital to bridge the gap between the time that they invoice and the time that they get paid.

Fortunately, factoring is available to finance small and start up businesses like this one as the only asset it requires to support the funnding are the unpaid sales invoices of the business.

At a time when the government are encouraging increased lending to businesses factoring could play an important part in providing that finance but as we have found in our research factoring is not a finance product that is well known or understood by businesses generally. Factoring is an untapped resource to aid in the recovery of the UK enconomy.

Finance Cost Is The Biggest Issue That Is Being Addressed By Some Invoice Finance Companies

Glenn — Wed, 01 Sep 2010 10:56:25 +0000

The research that we have published in the past demonstrated that 41% of SMEs thought that cost was the biggest reason for businesses not taking up invoice finance. Our research has also revealed that 100% of SMEs think that the availability of business finance has reduced over the last year and 86% also believe that the cost has increased over the same period.

This may be true generally but there are some invoice finance companies amongst our partners that have moved positively regarding this issue. Some of our providers are able to offer invoice finance for a service charge as low as £2,000 per annum.

Absolute Invoice Finance Rebranded As Aldermore Invoice Finance

Glenn — Tue, 31 Aug 2010 11:15:11 +0000

Notification has just been received that Absolute Invoice Finance (formerly known as Cattles Invoice Finance) have rebranded once again as Aldermore Invoice Finance, a division of Aldermore Bank PLC, who acquired the business last year.

Research Results Posted to Linkedin UK Invoice Finance Research Group

Glenn — Wed, 25 Aug 2010 12:04:57 +0000

The UK Invoice Finance Research group on Linkedin now has 46 members and I have already posted up some of the research that we have conducted into the UK market. More research results will follow together with new studies that we are undertaking at present.

Please visit www.linkedin.com sign up to Linkedin and then join the UK Invoice Finance Research group which is open to anyone with an interest in the invoice finance, factoring and invoice discounting industries. If you are already a member please recommend the group to your contacts that might be interested.

UK Invoice Finance Research Group Launched On Linkedin

Glenn — Fri, 20 Aug 2010 13:06:04 +0000

Last night I created a group on Linkedin called “UK Invoice Finance Research” group which already has 22 new members! The purpose of the group is to share research findings relevant to invoice discounting in order to aid the expansion of the market.

Initially I will update it with some of the findings that I have posted to this blog but we are constantly conducting new research so that will also be shared with the group.

The group and www.linkedin.com are both free for anyone to join.

VAT Arrears Repayment Pressure Rises Amongst Prospects

Glenn — Mon, 16 Aug 2010 10:56:08 +0000

We have noticed a number of new prospects recently mentioning pressure from the HMRC for the repayment of outstanding VAT arrears as the reason for seeking factoring or invoice discounting. In addition, half of those that mentioned VAT arrears also said that they had received a letter from HMRC advising them of their intention to visit and verify their VAT returns.

How Big Could The Invoice Finance Market Become?

Glenn — Thu, 12 Aug 2010 11:32:59 +0000

I have just written a piece for the Commercial Finance Today publication titled: “The Prize - The Potential Size of the UK Invoice Finance Market” that attempts to size the potential target market for invoice finance in the UK if some of the issues I set out in my last article were to be addressed: http://www.glennblackman.co.uk/news/the-secret-to-selling-more-invoice-finance-2/

My article should be in this months edition of Commercial Finance Today from Commercial Finance People.

Factoring Service Charges From Just £2,000 Per Annum

Glenn — Wed, 11 Aug 2010 08:38:28 +0000

We are always on the lookout for the best factoring deals for our clients. The “best deal” doesn’t always mean the cheapest rates but in some cases that is the primary criteria by which a prospective client wants to compare factoring companies and offers.

We have just established a relationship with a new factoring partner that is able to offer a small business a factoring facility with a comprehensive credit control service with a service charge from just £2,000 per annum.

Asset Based Lending Industry Loses Another 347 Clients In Q1 2010

Glenn — Tue, 10 Aug 2010 13:32:08 +0000

Statistics from the ABFA (Asset Based Finance Association) for the first quarter of 2010 show that their members recorded an overall net decrease in client numbers of 347 during the quarter.

These figures include members clients using the following products: domestic factoring, domestic invoice discounting, export and mixed export & domestic, import factoring, stock finance and ABL (asset based lending) facilities.

Conversely we have continued to grow our own client numbers in Q1, bucking the industry trend, by searching the market for clients and finding them the best deals that are available.

Example of How Not Understanding Invoice Finance Can Cost Money

Glenn — Mon, 09 Aug 2010 09:26:19 +0000

Much of the research that I have published recently has suggested that there is a general lack of understanding amongst businesses about invoice finance products. We have just seen the perfect example of a prospective customer not understanding how invoice finance products work which has been costing them money.

Our Invoice Finance brokerage has been in contact with a prospective customer that was using factoring (funding and a collections service) that was being provided by a major bank. The lead was lukewarm as the client said that they were interested in saving money, they were not getting a good service from the bank but they would only move for a substantial cost saving and they didn’t think that any other factoring company would be able to provide that.

We put them in touch with one of our invoice finance partners who was prepared to quote for a factoring facility but as they expected the saving was not going to be that significant. The sales person at our partner company asked the prospect if they had considered invoice discounting and the client said that they had never heard of it and had no idea what it was!

Invoice discounting (funding only without a collections service) would provide them with a significant cost saving, as the invoice finance company is not providing a credit control service and hence the cost is reduced. The prospect was happy to take on the credit control function as they were already having to undertake it themselves in support of the bank factor that they were using.

This change of product has been able to provide them with a substantial cost saving which was money they were throwing away as they didn’t understand the range of invoice finance products that were available.