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05 Jan

Invoice Finance Quote »

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Invoice Finance Quotes are rarely easy to decipher when looking at two side by side. The reason is that invoice finance quotes from different companies rarely use the same terminology. Invoice Finance companies also rarely disclose all the costs so it is difficult to do direct comparisons.

If you are looking for an invoice finance quote the team at Invoice-Finance.com would welcome the opportunity to be of assistance. You can use our simple online invoice finance quote system to establish an indicative quote. We will also analyse your requirements and use our market knowledge to introduce you to the invoice finance lenders best place to meet your needs.

It is important to remember that each invoice finance company has different criteria and capabilities. These can change and it is our job to stay in touch with the market and understand these. This can save you both time and money when looking for an invoice finance facility.

In terms of costs it is worth knowing that at certain times companies will choose to grow their book aggressively and will agree not to be beaten on price. These opportunities to achieve fine rates come and go and the invoice finance companies with the special offers will differ.

The team at invoice-finance.com will source you the most suitable facility, from the best suited provider at the best possible rates. What is more is that our service is absolutely free.

04 Jan

VAT Increase »

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Well the new year has only just started and already we have seen a VAT increase. While we have all been aware of this for some time I wonder how many businesses are ready for this?

There are implications for businesses both in terms of administration and also in terms of cashflow.  Businesses across the UK will be looking at adjusting invoices to reflect the VAT increase and in the retail sector the VAT inclusive prices need changing on everything.

There is however a cashflow issue that is caused by the increase. Businesses will typically be collecting in invoices with a VAT rate of 17.5% but will be paying out on invoices at a VAT rate of 20% if their credit management is not up to scratch.

If cashflow is expected to be an issue in 2011 for whatever reason it is worth being proactive about it. Establishing relationships with suitable funders such as invoice factoring companies is worth doing well in advance of cash flow becoming a major issue. It allows you time to source the right facility but also gives lenders comfort that you know what is going on in your business.

Businesses should also ensure that any cash flow forecasts are updated accordingly to avoid any unexpected surprises.

03 Jan

Factoring Company – Manchester »

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If you are a business in Manchester looking for a factoring company you have an array of factoring companies available to you. The challenge however remain finding the right one for your business and that is dependent on a lot more than location. If you need assistance please visit the website of Smart Factoring Quotes.

There are several factoring based in Manchester and these include Skipton Business Finance, Venture Finance, Positive Cashflow, Ultimate Finance, Ashley Commercial Finance and Bibby Financial Services. There are also the major national factoring players with the capabilities to service businesses in Manchester.

So if you are looking for a Manchester Factoring Company what should you be looking for? That will depend entirely on your own businesses requirements and characteristics. Depending on your size, sector and requirements there will undoubtedly be a factoring company that is best suited to meet your factoring requirements.

Smart Factoring Quotes is fully operational in Manchester and would welcome the opportunity to assist you.

23 Dec

Invoice Finance – Overview of 2010 »

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It is interesting looking back at 2010. Late in 2009 a lot of people were hoping that we see a return to normality, not just in the invoice finance market but also in the world at large. I think that I was one of those people and possibly more in blind optimism I thought that we would start the year and be very busy.

The year got off to a very slowly start as the snow only served to compound the hangover from Christmas and the doom and gloom from 2009. From there I heard various excuses as I spoke to people through the year including pre budget and post budget caution, pre-election and post election caution, let’s not forget the volcanic dust cloud, the build up to the world cup, the world cup (I was there and wish I could forget it) and the post world cup blues. However, we saw a big increase in inquiries after August – maybe it is the pre Ashes optimism!! Who knows.

Looking more specifically at the invoice finance market I think we have seen a fairly interesting year. We have seen acquisitions and possibly some unexpected ones – the Ultimate takeover of Ashley is one that springs to mind. On top of that we have seen the launch of some new players such as Innovation Finance and Team Factors who will hopefully prosper. I also think we have seen a new look Hitachi in the market place who are fairly vanilla in terms of appetite but their pricing is aggressive enough for the banks to worry and they have deep pockets and good service levels to go with it which can only be good for the end customer. We have seen the rebranding of Cattles to Absolute Invoice Finance and then rebrand again as Aldermore Invoice Finance – part of the UK’s newest bank. Importantly we have seen lenders return to the market and genuinely compete on price which again is good for clients.

From a personal perspective as a broker the year has been a good one and we have strengthened some relationships, initiated others and it would be fair to say we have cooled some off. Good relationships with invoice factoring companies is important to our businesses for a number of reasons. It allows us to understand the criteria and capabilities of those lenders which means we can place clients with them safe in the knowledge the client will be happy. This is our ultimate goal. We have lenders who share this mindset and as such we have developed longstanding relationships with them. Some new lenders have been a real revelation and we have been delighted to form working relationships with them – these would include IGF Invoice Finance, Hitachi and Partnership Finance. The flip side to this unfortunately are the lenders where we have cooled things off or in some instances cut ties altogether. We have discovered some fairly unsavoury practices by one lender this year and as such have chosen not to deal with them going forward. Another lender has caused a huge amount of e-mail traffic in complaints as they simply refuse to communicate with clients and as such we have cooled things down.

We remain focused on developing long term relationships with clients and our aim is to find them the best possible invoice finance provider to meet their circumstances. We help to structure the best possible facility and explain all costs and obligations so an informed decision can be made.

I was thinking of writing some predictions for 2011 but I fear more uncertainty ahead so I will save my blushes!!

13 Dec

Invoice-Finance.com – Now up and running »

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We have previously posted that Invoice-Finance.com was being worked on. The site is now up and running and is aimed at businesses looking for an invoice finance facility.

The site is a free online resource that offers invoice finance advice from dedicated invoice finance brokers. Free indicative quotes are available to businesses and advice is available online, over the phone and indeed face to face. Our aim is to offer free advice to businesses looking to set up an invoice finance facility at a level that they are comfortable with. Some business owners simply want to look online and obtain advice, others will want the comfort of speaking with an invoice finance expert while others will want to meet someone and obtain face to face advice. We look to offer all these services.

Our approach is simply to highlight what invoice finance options are open to a business and explain the pros and cons of each. From there a business owner can decide which invoice finance solution best meets their needs.

11 Dec

Gener8 Finance »

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Gener8 Finance offer invoice finance facilities to the true SME’s of the market. They also approach things slightly differently to most independent invoice finance providers. They operate on a flat monthly fee in comparison to fees that are charged by way of a percentage of turnover. This fee is based on the size of the facility you require. They will also consider ‘invoice discounting’ facilities for smaller businesses which most invoice finance lenders won’t.

The business was started by Dave Richards who was previously at IGF after he had done some analysis of what the market wanted. I understand a lot of this analysis was done while acting as a broker. I think the approach was developed in part to meet client needs and in part to come up with a unique offering.

Has the new approach worked? The feedback I have from Gener8 Finance is that things are going well which is good and they have been able to expand their sales force which backs this up.

From my side I am not sure the flat fee structure is really revolutionary but I sense it appeals to some clients and can be perceived to be cheaper. Personally I am not convinced it is cheaper but I can see why the approach would appeal to SME’s who want to be able to budget. I am also not sure a true invoice discounting product is offered but I don’t see that as an issue.

If you are an SME and you are looking for a suitable invoice finance provider then it is worth contacting Smart Factoring Quotes to see which lenders are best placed to meet your needs.

06 Dec

SME Invoice Finance »

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SME Invoice Finance are an independent invoice finance company based in Guildford.

In the early days they were looking to provide invoice discounting facilities to smaller companies that would ordinarily not qualify. These days they seem to be taking a more traditional approach.

They have grown considerably in recent years through the acquisition of Potential Finance and RDM Factors and they also bought the book of Challenge Finance when their funding line was pulled by Coface.

In my experience with SME they have a fairly cautious approach and sell on the basis of good service levels which they back up by explaining they have one of the longest client lifes in the industry. On that basis they generally do not compete on price levels as they believe their service represents good value.

If clients are happy then they are clearly doing something right. Staff retention also seems very good as do their profits so it seems to be a well run operation.

In terms of my client base I have introduced SME Invoice Finance on several occasions alongside some of their competitors and in most cases they seem to miss out because of prepayment levels being too low, pricing being to high or security requirements being too stringent.

My role as a broker is merely to explain what options are available to clients rather than selling in a particular lender. I explain all the costs involved and how each facility will operate and from there let them make a choice. To date we have not done much business with SME so clearly they are not for everyone. That said, they are a well managed business and they will be a very good option for some businesses.

01 Dec

Recruitment Company – Invoice Discounting »

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Recruitment companies often use invoice discounting however very few have optimised their facilities in the market place.

Invoice discounting is an ideal solution for temporary recruitment companies that are on monthly payment terms but have to pay wages weekly. The invoice discounting facility can be confidential which means customers are unaware and in comparison to factoring the facility is typically cheaper.

In terms of a recruitment company optimising an invoice discounting facility for both costs and cash generation they should consider the following:

  • use the invoice finance market to your advantage and look to see which lenders are hungry for new clients.
  • look beyond the headline rates and consider total costs over a 12 month period.
  • remember you are part of a preferred sector so don’t be shy to negotiate strongly to reduce rates.
  • when looking at cash generation ensure that limits are available at least for your top debtors.
  • look at how a concentration limit could limit your funding – this is very important if you have a customer that makes up a large part of your turnover.
  • consider raising finance against your perms – some lenders will offer a 70% prepayment against perms.

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