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When speaking with clients we are often asked to source invoice discounting facilities on their behalf. When I press the prospect on why they want invoice discounting it is often because they feel the facility is confidential and they want to retain control of their credit control.

I think traditionally invoice discounting was confidential but I am seeing more and more lenders insisting upon disclosure and disclosed invoice discounting seems to be more common.

If you are looking to retain control of your credit control then invoice discounting whether confidential or disclosed will meet your needs. You may also consider a CHOCS facility which is essentially factoring but allows you to do your own credit control. CHOCS stands for Client Handles Own Collections and just to confuse matters it can also be disclosed or confidential. Typically a CHOCS facility will be more readily available than an invoice discounting facility because the criteria are less stringent.

If you are looking for a confidential facility then obviously a confidential invoice discounting facility will meet your requirements. However, you may also wish to consider confidential CHOCS which is more readily available and also confidential factoring where credit control is done by the factoring company but in the name of your business.

Recruitment finance can take various formats. Typically it depends on the type of recruitment and also the size of the company. We will look at the three main options available:

Recruitment factoring: this is suitable for recruitment companies of all sizes and for both temporary recruitment companies and permanent recruitment companies. It provides an advance against invoices raised of up to 90% allowing temps wages to be paid. It is also suitable for permanent recruitment companies but prepayments are typically around 70% for perms. Recruitment factoring is available to new start businesses aswell as larger well established companies. It includes a credit control service and can also include credit protection to reduce the risk of bad debts.

Recruitment invoice Discounting: suitable for companies that are better established and have a good credit control function within the business. This type of recruitment finance does not include a credit control service. It can be confidential or disclosed and can include credit protection to reduce the risk of bad debts. Again it can be used for either temporary recruitment or permanent recruitment.

Recruitment back office solutions: well suited to recruitment companies that want to outsource the full back office function. This service can provide finance in the same way as factoring but 100% prepayment levels can be achieved. It also includes payroll and admin services as well as optional credit protection and credit control.

If you have a requirement for recruitment finance it is worth contacting Smart Factoring Quotes to discuss your options in detail.

We often receive inquiries from clients who are keen to transfer from one lender to another because the credit control is poor.

I am afraid to say that often the provider accused of providing a poor service is a bank owned factoring company. However, when we ask how the factoring company was chosen there is also a common theme. They were either chosen because that is who the business banks with so it was a default choice or because they were the cheapest.

Without going to the market it is almost impossible to understand what your options are. If you don’t understand what your options are then how can you make an informed decision?

If you have chosen the very cheapest option then are you really surprised that the service does not quite meet your expectations? Would you expect free champagne on an Easyjet flight or free home installation from Ikea. No, of course you wouldn’t.

Typically with credit control from a factoring company you will get what you pay for. The larger bank owned factors will typically fully automate their credit control and it will be done by automated letters and month end statements. They may call your largest debtors but it will be a hands off approach.

Other factoring companies will provide a hands on credit control service where they call each debtor and have open communication with you the client. This however is time consuming and as such the cost for such a service is more expensive.

When choosing a factoring facility it is important to understand what level of service you expect and choose a lender accordingly.

There seem to be several invoice finance brokerages appearing that are linked to insolvency practitioners. Only today I was asked by a client of mine why this was so I thought a post may be due on the topic.

In short the insolvency practitioners see the invoice finance leads that give to lenders as a carrot to attract insolvency work from the lenders. In fact some of the IP owned brokers will only give leads to lenders if they give them insolvency work in return. I have seen some e-mail marketing from one such broker offering 2 new deals to a lender in return for a ‘fee generative appointment’.

Reciprocity is a buzz word in many industries these days and the invoice finance industry is no different.

However, in my opinion it does raise concerns for business owners who approach these brokerages looking for independent and impartial advice about factoring or invoice discounting. There is every chance that the business will simply be placed with the lender that they ‘owe’ a deal to. If this is the case it means that they are not really acting in the best interests of that client.

I am quite often approached by clients who insist on using confidential facilities. The reasons for this can be varied and I always try to accomodate their requirement.

Traditionally confidential invoice finance has been hard to obtain as the only product available was confidential invoice discounting. The criteria for this were quite rigid and it was reserved for large, profitable business with a good finance and administration function.

The good news is that confidential facilities are now more readily available than ever. This makes the life of an invoice finance broker much easier as it means we have a wider range of products to offer clients based on their unique requirements.

Confidential facilities now include confidential factoring, confidential CHOCS there is a new confidential product due to be launched in January 2012 which we are quite excited about.

Smart Factoring Quotes are proud to announce the launched of their new and improved website.

Our aim has always been to provide business owners with a balanced view on invoice finance. The new site is more informative and we want to be the preferred source of online information for business owners looking for an invoice finance facility. We want to empower business owners to make an informed decision. That informed decision can be about choosing whether or not to use a form of invoice finance, which facility to use or which lender has offered the most competitive terms for their business.

If you are a business owner who is considering entering into an invoice finance agreement or reviewing your existing arrangements make Smart Factoring Quotes your first port of call.

Northern Ireland has a new commercial finance provider in the form of Keys Commercial Finance.

Keys Commercial Finance are based in Belfast and Brian Sumner who is the ex CEO of Ultimate Finance is an investor and I understand is also mentoring them. They have entered into a back to back finance facility with Venture Finance who in turn are owned by ABN Amro who are a state owned Dutch bank.

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Factoring in Northern Ireland is an important form of finance for the area. However, which invoice factoring companies can assist in Northern Ireland?

We are fortunate to have an excellent client base in Northern Ireland and through recommendation have managed to support clients with good advice as to which lenders can best meet their needs.

I personally believe more invoice finance companies should show a willingness to do business here. There is an excellent market of businesses, the legal system is obviously the same as in England and the region is easily accessible by cheap flights from the UK. The geography certainly shouldn’t be used as a barrier to do business.

If you have a business in Northern Ireland and you are looking for an invoice finance facility get in touch with Smart Factoring Quotes today.