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28 Oct

High Street Collections »

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High Street Collections is a new collections company with a new approach based in the North East of England but with a national presence.

So why is the approach new?

Well their approach is professional and not heavy handed. It also involves visits to non payers along with the usual letters and telephone calls. While this may not be new, the approach is solutions focussed and this is new. High Street Collections focus on meeting with a debtor to establish if it is a case of ‘can’t pay’ or ‘won’t pay’. From there they look to establish the validity of any disputes and then find a solution as to how the debt can be paid. The key is stressing to the debtor that the debt is not going away and as such it is better to find a palatable solution.

Their success rate in collections is 87% and this incorporates collections from debtors that range from private individuals to major corporates.

High Street Collections act or aim to act for SME’s, finance companies, factoring companies, insolvency practitioners and banks.

It is important to remember that the benefits to clients include:

  • No upfront legal fees.
  • Improved cashflow from the recovery of debt.
  • Improved profitability by reduction of bad debt.
28 Oct

PayFactory »

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PayFactory is the new name of Calverton Business Support which provides invoicing, finance, credit control and payroll management to recruitment companies. Their aim is to become the market leader in recruitment finance and back office support.

Essentially it allows a recruitment company to outsource the areas they do not enjoy and concentrate on recruiting. It also offers peace of mind that their workers will be paid correctly and on time.

We have been told to expect some heavy marketing and PR in coming months.

It does however sound as though work still has to be done on the website to allow for uploading of schedules online and viewing of reports online.

If you wish to consider a facility from payFactor please contact Smart Factoring Quotes today. We can explain their offering in more detail. Importantly we can also explain the other options available to you from other providers.

26 Oct

Declined – What can you do? »

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If you have been declined for an invoice finance facility what can you do? Well I guess to provide an accurate and short answer I would need to understand why a facility had been declined however we can look at some general advice:

  • If it is because you operate in a particular sector such as construction it is worth looking for a specialised lender.
  • If it is because your business is too large or too small for the lender you approached use the market place and look for an alternative that actively targets businesses of your size.
  • if it is because of adverse credit history of the business or the directors look at alternative lenders but it is wise to be totally upfront and honest. Explain what happened, why it happened and why it won’t happen again.
  • if it is because of financial performance look at other lenders. Not all lenders are concerned with financial performance.
  • If you have looked for invoice discounting but have been declined perhaps you would qualify for another type of facility such as CHOC’s or factoring.
  • You could always consider asking for a reduced prepayment level.
  • Consider asking a lender to cap your facility to limit their risk.
  • Can you offer additional security to show the lender you have confidence in the business?

It is important to remember that all lenders have different criteria so it is worth shopping around. Smart Factoring Quotes would be happy to undertake a market review and advise you of your options.

24 Oct

HMRC – Time to Pay Agreements »

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HMRC are trying to agree 9 month repayment plans with businesses for PAYE and VAT arrears. However, it is possible to negotiate better and more reallistic terms.

In my dealings with businesses as an Invoice Factoring broker I come across a lot of businesses who have some form of arrears with HMRC. Often the invoice finance company will put a condition in their offers that the business must have a time to pay agreement in place for these arrears.

A time to pay agreement is a formal repayment plan that has been agreed by HMRC.

Unfortunately HMRC in recent months have been very aggressive when negotiating these and have been advising everyone that the maximum term is 9 months. This is often unrealistic and in most cases simply postpones the winding up petition.

So why do businesses agree to these repayment schedules that they can’t meet? I think often they are feeling the pressure. They are typically not used to dealing with the big beast that is HMRC and are worried they will wind them up. The requirement from the invoice finance company to have a repayment plan in place also adds to this pressure. A delay in obtaining the finance could mean business failure and as such there is relief in agreeing to any repayment plan.

I was speaking to a company that specialise in negotiating better terms for these agreements and they are negotiating between 18 months and 3 years. Their emphasis is in proving the repayment plan is what will work and is realistic. Their track record helps as they have a relationship with HMRC but it can be done by individual businesses. It is important to have cash flow forecasts to support your argument but it is well worth standing your ground to reach a conclusion that is ultimately more beneficial to both parties.

23 Oct

invoice-finance.com »

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The site is still under development but it will compliment our existing site Smart Factoring Quotes.

The site is aimed at providing business owners with a free online resource that will ultimately help them select both the most suitable invoice finance product for their business and the most suitable invoice finance provider.

It is important to consider that whether you select a factoring of invoice discounting product the way it operates and performs will differ from lender to lender. This is based on the simple mechanics of how lenders operate but also on less obvious things such as a lenders reputation for communication. Some lenders will simply not return calls which can prove very frustrating while others have excellent reputations for customer service levels.

With our knowledge of the market we can help you navigate your way to the lender best placed to meet your needs.

20 Oct

Invoice Discounting v Overdraft facility – Fees »

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Invoice discounting v Overdraft facility

This is a question that I am often asked and unfortunately it is a purely academic question for most businesses. Due to certain test cases relating to floating charges banks are no longer comfortable to lend on overdraft where the major asset within a business is the debtor book. On that basis invoice finance is typically the only option available to a business.

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19 Oct

Cleaning Company Factoring »

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For a cleaning company, factoring can be a valuable source of finance. The service can be quite labour intensive with cleaners visiting offices to clean and they may require wages on a weekly basis. The issue from a cashflow perspective is the the cleaning company may only get paid by clients on a monthly basis at best.

This is where cleaning company factoring can assist. As invoices are raised they can be notified to the factoring company who will advance up to 90% of the invoice value. This will allow wages to be paid without the worry of invoices being paid.

If you have an invoice factoring company it is worth contacting Smart Factoring Quotes to see which invoice factoring company will be the provider most suited to your businesses requirements.

19 Oct

Invoice Factoring Companies »

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Invoice Factoring Companies within the UK range between the arms of the high street banks such as HSBC through to small family owned outfits such as Factor 21.  Most of them offer the same basic services which are factoring and invoice discounting and some offer specialised services such as confidential factoring and trade cycle finance. However, it is important to remember that the same product from different lenders can be a very different proposition. It can differ on many levels such as price, actual prepayment level, the way you operate the facility and notify the invoices, the way the service is delivered by the lender, etc..

There are roughly 45 invoice finance companies in the UK so there is a good choice.  Typically depending on the unique needs off your business there will be a lender that is best suited to your needs. The problem is in identifying that lender. Unfortunately the factoring companies are sales focused and as such all will try to convince you that their offer is best for your business.

If you want some impartial and independent advice contact Smart Factoring Quotes.

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