0845 643 9485
Call now for expert advice

Free, instant quote

Free, instant quote

Author's Archive

28 Nov

Cheap Factoring »

by

Cheap factoring is available from a variety of providers however everything is of course relative. When looking for an invoice finance facility it is important to remember that in some cases the most expensive provider can be 3 times more expensive than the cheapest provider.

It is also important to remember that good deals become available from lenders from time to time and as such the cheapest lender will depend on when you are looking. It is also important to remember that the cheapest factoring provider will also depend on the unique characteristics of your business and it’s factoring requirements.

Smart factoring quotes understand the market and monitor it’s changes. On that basis we can save you time doing research and can also save you money by ensuring the most competitive factoring lenders are introduced to you.

25 Nov

Invoice Factoring – Newcastle »

by

Invoice Factoring – Newcastle

Invoice Factoring is available throughout the UK but which invoice factoring companies have a true presence in Newcastle? Smart Factoring Quotes have an office in Newcastle.

Newcastle was an industrial heartland of heavy industry within the UK but today it is not dominated by large industrial employers. It thrives on the back of local entrepeneurs who have started successful SME’s.

These SME’s require funding and for businesses that sell or provide a service to other businesses invoice factoring or invoice discounting can be an ideal solution.

Newcastle is actively covered by several players. These include Bibby Financial Services, Aldermore Invoice Finance, Lloyds TSB Commercial Finance, Close Invoice Finance and Skipton Business Finance. There are also another dozen or so lenders who are very happy to assist businesses in and around Newcastle.

Smart Factoring Quotes also have an office in Newcastle and a real desire to help local SME’s. If you are an SME in Newcastle looking for a factoring facility it is worth understanding which lender and which product is best suited to your business. Smart Factoring Quotes can help you find both the right lender and the right product – simply contact us on 0845 863 0738 or visit or website. We can assess all the local offerings and also draw on contacts across the UK to find the best solution for the requirements of your business.

Each lender has very different criteria and capabilities. They are each suited to different types of businesses and it is imperative that you select the right lender for your business. Entering into what is typically a 15 -0 18 month contract with a lender that can’t really provide what you are looking for can be very detrimental to you business. It can also be very time consuming and costly.

23 Nov

Skipton Invoice Finance »

by

Invoice Discounting Services

They are the invoice finance arm of Skipton Building Society and provide a full range of recourse invoice finance solutions. If you require a non recourse invoice finance facility they can source an appropriate credit insurance policy from a third party provider.

We have dealt with Skipton Invoice Finance on several occasions and they can do an excellent job with their traditional approach to invoice finance. When I say traditional I am referring to their credit policy which relies heavily on the quality of the debt and the quality of the people within the business. They accept that some businesses have financial difficulties and as such fall foul of the banks criteria for invoice discounting. Their approach is a flexible one and their product offerings can meet the needs of a client but also mitigate any risks that are associated with a deal.

It would be fair to say that Skipton Invoice Finance are not for everyone and they will be the first to admit this. However, in some situations they can offer what other lenders don’t. Their communication style is also direct which means clients know exactly where they stand.

20 Nov

Bibby Factors »

by

Bibby Financial Services offer factoring, invoice discounting and trade finance solutions to businesses.

They ae the largest independent invoice finance provider in the UK with regional offices across the UK from Hastings to Edinburgh.

I have had a lot of dealings with Bibby and while their service levels can vary from office to office I feel that overall Bibby are a creative and solutions oriented lender.

Bibby are sometime criticised for their additional charges but in fairness to them I find their pricing to be competitive within the market and typically they price related to the risk taken which is fair. Bibby Factors will also come up with solutions that other providers of invoice finance often won’t.

If you would like to contact Bibby Financial Services or find which lender is best suited to your needs then please contact Smart Factoring Quotes on 0845 863 0738.

15 Nov

Factoring – Collect Out Fees and Early Termination Fees »

by

I have recently been participating in a forum hosted by the factoring.

It was unfortunate that the majority of posters were passionately negative about the invoice factoring industry. Their main gripes seemed to revolve around:

  1. The work between the invoice finance providers and the insolvency practitioners that they did not believe was in the best interest of the actual client.
  2. Hefty early termination fees when a client looks to leave.
  3. Hefty collect out fees levied in the event of failure
  4. The lack of transparency with regards to pricing and hidden charges.

There were perhaps half a dozen passionate posters on the thread who had suffered bad experiences. This is in comparison to over 42,000 businesses that actually use invoice finance.

However, it does suggest that there are some unsavoury practices within the industry that should be stamped out.

11 Nov

Invoice Factoring – Maximise Prepayment »

by

Invoice Factoring – Maximise Prepayment

We have discussed several times on this blog that headline rates from invoice factoring companies can be misleading. If we put pricing to one side we can look at how you can maximise the amount of cash that your facility will generate.

Debtor Limits – some lender will assess each individual limit while others will only check debtors over 10% of the ledger. It is important you can get funding against your debtors. If you can’t the prepayment level is a red herring.

Minimise Dilution – the higher the number of credit notes you issue the lower the prepayment a lender will offer you. It is therefore important to concentrate on the quality of administration, pick & packing, etc.. to ensure credit notes are kept to a minimum.

Additional Security – lenders may look to increase your prepayment level if you can offer additional security. This could take the form of a personal guarantee, a charge on some unencumbered machinery or a charge against a property. It is really a show of confidence from you as a business owner and offers the lender additional comfort.

Change in Facility – if you have an invoice discounting facility you may get a better prepayment level if you move to a disclosed facility such as invoice factoring. It gives the lender more comfort and as such they may be willing to increase their exposure by increasing prepayment levels.

02 Nov

Bankers – The New Retailers »

by

It was while reading another forum I realised the frustrations business owners have with modern day bankers. In short they are constantly trying to cross sell business owners products they either don’t need or can get elsewhere for cheaper. However, when it comes to lending money they are rarely anywhere to be seen.

The modern banks that populate our high street today consider themselves as retailers and this is a message delivered to the employees of these banks on a daily basis. The buzzwords such as ‘cross selling’ are the main focus of all the banks and this theory is supported by businesses who apply for loans to help grow their businesses only to be bombarded by calls to sell them insurance.

It is fair to say that anyone that you meet face to face in a bank or speak to on the phone will have some sort of sales target. These targets drive behaviour and unfortunately advice.

The redundancy policies of the banks over the last decade have seen experienced bankers and lenders replaced with young sales people. The decision makers are a minority of people in an ivory tower they call the credit department. As such you are relying on the report that your ‘sales contact’ will submit to this credit department. Far from ideal as your contact will have spent more time attempting to sell you insurance than they have understanding your business and it’s real requirements.

The invoice factoring industry is not altogether different. It remain sales focused but on the whole it concentrates on products it understands and delivers. Another important difference is access to decision makers. Within the invoice finance industry it is possible to access decision makers and as a business you can really benefit from this.

28 Oct

Factoring Quote – what to look for? »

by

If you have a factoring quote what are the things that you should look out for?

  • Prepayment – this is often quoted as up to and it makes it hard to compare offers unless you have actually had a survey done by a lender.
  • Service fee – look at both the % service fee and minimum fee.
  • Discounting Fee – remember to look at the margin, understand which base rate is being used and importantly what minimum base rate is being used.
  • Audit fees – what are the fees and how many audits a year are required?
  • Dispursements – please understand what they are and also when they are charged. Will they effect you?
  • Take on fee – remember that the service fee is applied to the whole ledger upon commencement so if you are transferring from another lender you could be paying twice.
  • Set Up fee and legal documentation fee – please check these.
  • Understand any early termination fees or collect out fees that can be applied – understand both what they are and when they can be applied.

Recent Posts

Twitter Updates

    Our Network

    © 2023 Invoice Factoring Forum | Sitemap