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Daniel Bowsher

When You Should Compare The Market For Invoice Finance Deals | Invoice Finance Reading | Help with Invoice Finance
Why you should ‘compare the market’ for invoice finance deals as you would your energy or car insurance 800 533 Invoice Finance Connect

Why you should ‘compare the market’ for invoice finance deals as you would your energy or car insurance

Money experts are always advising us to consider switching insurance, mobile phone, broadband and energy providers to be sure of getting the very best deal possible for our circumstances.

But if your business is one of the circa 50,000 in the UK using invoice finance, it may not have occurred to you that the same principle applies to your existing funding deal, especially if yours has been in place for a long time.

Take the example of a company which, 10 years ago, made use of an invoice finance facility on an annual turnover of £1m and were borrowing around £150,000. The cumulative annual fees were in the region of £15k per annum.

Ten years on and the company’s annual turnover has grown to £8m, and its approximate borrowing is £1.2m.  Based on the original fee parameters set, the business would now be paying £135k per annum, an increase of £120k! If the business hasn’t reassessed or reviewed the finance arrangement it originally had in place, the fee rate they’re now getting may still well be in line with the deal originally offered, but, given the higher numbers involved, it could certainly be improved.

Another point to bear in mind, looking at our example, is that, 10 years ago, our company would not have been able to provide a proven track record of trading, and probably wouldn’t have had a strong balance sheet. So the invoice finance provider would have insisted on personal guarantees from the business’s owners. However, a decade later with a trading track record to show, a period of sustained profitability and a lower risk profile, such guarantees would no longer be necessary.

Other potential benefits of reviewing your facility

Of course, once your finance is in place, it can be tempting simply to leave things as they are. But, actually, there are many sound reasons for regularly reviewing your provider:

  • To make sure you’re not paying too much for your finance
  • To ensure that you are benefitting from the maximum available cash possible, especially if you need more borrowing to drive growth
  • To be sure you are getting the best possible service from your lender, especially if you’ve been experiencing issues
  • Your business may have simply outgrown your current provider, or changed direction in a way it can no longer support

If you think any of these applies to your own organisation, it could well be time to join forces with a new invoice finance partner.

How we can help

At Invoice Finance Connect, we have many years’ experience in this specialist area of business funding. We work by regularly reviewing the fees and security our clients have in place. If you don’t have a broker like us involved in your arrangements, it’s highly unlikely that your existing lender will ever come back to you and offer to review your current deal and reduce what you’re paying.

Talk to us whether you are new to the concept of invoice finance or have been using it for a while. We’ll make sure your business is connected to the lender that’s absolutely right for you now. What’s more, we’ll keep reviewing things to make sure that remains the case, and suggest changes when appropriate.

Get in touch with us today to talk through how we can help you.

Streamlined Invoicing Processes | Extended Payment Terms | Business Cashflow | Business Invoice Help Thames Valley
Are extended payment terms placing stress on your company cashflow? 800 533 Invoice Finance Connect

Are extended payment terms placing stress on your company cashflow?

For smaller businesses it is always worth investing effort in streamlined invoicing processes which help stabilise cash-flow and minimise payment delays.

Invoice terms define how a business likes to be paid, and often encompass information such as acceptable forms of payment and any late penalties. The due date is perhaps the most crucial point of all.

While 30 days has traditionally been the standard, deadlines for payment are something you need to discuss with any client before starting work, and they vary considerably from one industry or sector to another. Large retailers, for example, can insist on extended terms beyond a month to 45, 60 or even 90 days.

Without firm agreements in place, cashflow headaches can result from any payment terms longer than 30 days, particularly when you need to pay suppliers, staff wages, VAT and PAYE before receiving any money in yourself.

If you run a shop and receive immediate cash, that’s one thing. But if customers pay after you’ve provided them with a service or goods, bear in mind that effectively you’re offering them credit, and you may need to bridge the gap in some way.

Debtor days, which can be calculated in several ways, is a measure of how quickly a business gets paid and shows the average number of days taken for a business to collect payments from clients. It can reveal a lot about the state of the business; a longer number of debtor days may mean that cash is in short supply with obvious consequences resulting.

Countering the impact of slow payers

Clearly there is a lot businesses can do, from invoicing promptly to using efficient billing software to chase unpaid invoices effectively and making invoices and payment terms clear. However, especially in the current climate, delayed payments can always happen.

You could consider a loan or overdraft. But invoice finance could well prove a far more effective way to fund and grow your business. In a nutshell, invoice finance provides funding of up to 90% of the gross sales invoice, typically within 24 hours of the invoice being raised.

The remaining 10% of the balance is paid once the end client has settled the invoice in full.

The cost for this service is either based on a percentage of the value of the original invoice, and between 70 and 80% of providers charge in this way. Alternatively, it’s charged as a flat monthly fee. It often depends on the particular situation or the preference of the parties involved. You also pay a finance charge on the money that is borrowed and of course the longer that invoices remain unpaid then the higher the interest/finance costs for the business.

To benefit from a service like this you need to be providing goods or services business-to-business and raising invoices in arrears after these have been delivered.

How we can help

We can help your business long and short-term as the current crisis continues, allowing you to resolve any immediate cashflow issues. With many years’ experience to our name, we offer various finance solutions, and can even better any existing arrangement you already have with an invoice discounter.

Get in touch and we can discuss some options before connecting you with the finance provider we think is the best match for your individual needs.

Building for the future | Impact of Covid 19 on Construction Sector Finances | Invoice Finance Connect
Building for the future? Impact of Covid 19 on construction sector finances 800 533 Invoice Finance Connect

Building for the future? Impact of Covid 19 on construction sector finances

The coronavirus pandemic is arguably having a greater and more rapidly changing impact on the construction sector than most, with many projects halted overnight at the start of ‘lockdown’. Even before the outbreak, the industry was already experiencing Brexit-related uncertainty, and last September it recorded the biggest drop in new projects since the financial crash a decade earlier.

The crisis is likely to have strong structural effects on construction’s supply chain, some of which may not be felt until later in the year; even when a business starts work again, often they won’t see any cash for up to 60 days.

Global consultancy Mace suggests construction firms could see a reduction in turnover of £29bn in this year’s second quarter. It adds:

“There is a possible time bomb for smaller businesses … from the third quarter of 2020. This will only be exacerbated by clients deciding to withhold or delay payments and the end of the government’s job retention scheme.”

Meanwhile, according to the Office for Budgetary Responsibility (OBR), output could be down 70% in the second quarter of 2020, hitting cashflow significantly for those without adequate cash reserves or strong balance sheets.

Equally, for production lines and manufacturing plants, operating is only financially viable above a certain volume, while many building products are the same as those used on domestic projects. With many households freezing work, demand for construction supplies could slip below the breakeven level.

Government support packages are in place, but the Construction Leadership Council (CLC) says just one in 10 building firms which had applied for this emergency finance following Covid-19 disruption had succeeded. Around a third had had their applications rejected, while the remainder were awaiting a decision.

The Institution of Civil Engineers (ICE) indicates that some four in 10 firms were applying for this help to meet short-term funding needs, suggesting a reluctance of other lenders to work with the industry.

Challenges the industry was already facing

Historically, the UK’s construction industry has not seen traditional lenders willing to provide finance, especially where a loan is not secured against an asset, although more specialised lenders now serve this market.

At the same time, projects’ high upfront labour and bulk materials costs can have significant cashflow implications, as do many building schemes’ long lead times. And, unfortunately, the sector is also known for delayed payments and billing terms which are stretched out as much as possible.

Construction industry finance: the background

The construction industry has many sub-sectors and lots of mutual interdependencies, with main contractors regularly managing (and paying for) dozens of sub-contracts, each of which is often worth £50,000 or less.

Especially in the public sector, the industry makes wide use of framework agreements, or umbrella arrangements in which an organisation agrees with one or more supplier (including contractors, sub-contractors  or consultants) on the terms for a long-term relationship during which the employer may award one or more contracts. So, it’s a strategic partnering relationship which, in practice, can range from a loose arrangement with preferred providers to something more formal.

External project financing can take the form of loans, shareholder funds, grants, venture capital, subsidies, donations, crowdfunding, and the like.

How we can help

Invoice Finance Connect works closely with the construction sector to help it overcome its challenges, and we understand the industry well. We’re keen to strengthen these relationships during the current crisis.

We work primarily with regional and local operators with turnovers of up to around £50m, matching them up with the best-suited lenders. Contact us to talk through your options.

Bad Debt Protection | Credit Insurance | Help With Non Payment of Invoices
What Is Bad Debt Protection & Why Might You Need It Now? 800 533 Invoice Finance Connect

What Is Bad Debt Protection & Why Might You Need It Now?

How it works  

Bad debt protection, or credit insurance, is a mechanism whereby companies can cover themselves against the possibility of invoices not being settled by their customer base.

Clearly, this safeguarding gives business owners peace of mind if a customer doesn’t pay their bills, whether that’s due to insolvency or failure to pay within the agreed credit period. This can be bolted on to an Invoice Finance solution easily, whether it be a Factoring or Invoice Discounting facility and of course acts as great deal of comfort for the company’s funder.

Non-payment of invoices can have serious cashflow implications for businesses, and this negative impact on income may in turn affect relationships with suppliers and other creditors.

In most cases, organisations will be able to use their insurance policy to claim up to 90% of the value lost through unpaid invoices. It can also be tailored to encompass different risks, from work in progress to binding contracts.

Exporters can also protect themselves against political risks.

What are the benefits?

As well as reassurance and peace of mind over payments, other benefits of having bad debt protection in place are:

  • It’s potentially easier to secure trade finance: Lenders are often happier to provide trade finance, and on better terms, if a business has this cover.
  • Protects cashflow: Clearly, being able to collect the funds you are owed is a big help in staying on top of cashflow.
  • Better trading terms with suppliers: Suppliers who know you have taken these steps to protect your business are more likely to want to negotiate improved terms.

What does the price of policies depend on?

As with other kinds of cover, the price is linked directly to the amount of turnover you are looking to protect, and the risks to which your business is exposed.

Your industry, your customers and their locations, plus your own track record in credit management will also all play their part when it comes to cost.

Why might I need this now?

The Covid-19 situation has clearly led to huge uncertainty for businesses across many sectors, with numerous companies suffering from financial struggles. So now could be an excellent time to think about protecting yourself against the prospect of bad debts.

And while no one thinks twice about covering their physical assets such as stock and buildings, protection against the debtor book can often be overlooked.

It’s also a good time to be thinking about this because the government announced recently that it would temporarily guarantee business-to-business transactions backed by debtor protection policies, via a temporary reinsurance arrangement. This was introduced when insurers started to contemplate withdrawing cover and increasing premiums.

How we can help

At Invoice Finance Connect, we are extremely well placed to discuss bad debt protection with you and connect you to the market leading providers within the sector. We have access to an extensive range of solutions according to individual needs, plus many years’ industry experience under our belts.

Talk to us even you already have cover; we may be able to help you secure a better deal. Let us discuss your options as we all adapt to difficult times. Whatever your particular needs or situation, get in touch today.

Covid-19 & Its Toll On Recruitment Industry Finances | Invoice Finance for Recruitment | Invoice Finance Newbury | Recruitment Finance Newbury
Covid-19 & Its Toll On Recruitment Industry Finances 800 533 Invoice Finance Connect

Covid-19 & Its Toll On Recruitment Industry Finances

Clearly, businesses everywhere have experienced disruption from the coronavirus. But the impact on the recruitment industry has been particularly significant. After all, it’s a people-focused business, not one intended to be conducted at a 2m distance.

It’s a sector that had seen steady growth over the last five years, with the market valued at nearly £39bn last year, as the UK enjoyed low unemployment. But recent figures have shown the sharpest decline in the industry since the 2008 crash, as unemployment is expected to rise this quarter to levels not seen since 1983 and claims for Universal Credit have soared 910%.

Many organisations have had to downsize, close completely, lay off staff, reduce employees’ hours, or are using the government’s Job Retention Scheme (furloughing). In many cases, start dates for new hires have been delayed. Organisations including travel operator TUI have understandably frozen recruitment completely.

So while a 2019-2021 growth prediction of 3 to 6% for the industry was made in recent months, the picture now looks very different.

Tough on agencies

Agencies in particular risk a lengthy wait before employers start to outsource the recruiting process again. This can bring particular financial difficulties. Not least the drop in income but also, as activity returns, cash flow issues as an agency may have to pay a placed employee’s wages at the end of a working week, but not be reimbursed until the end of the month by the client.

Additionally, agencies need to be aware of organisations such as GRI, which operate between agencies and end clients and impose strict trading terms on outsourced recruitment solutions, which in turn can have an impact on their ability to secure funding. GRI can be a huge issue for those agencies that utilise Invoice Finance for their working capital as many lenders have challenges due to the nature of the contracts and also securing bad debt protection where GRI feature.

A survey of 300 industry professionals conducted in April by performance marketing specialists Talent Nexus and others found that more than half (55%) of agencies had either made or were considering redundancies, while only 9% of in-house recruiters had already cut jobs.

There were similar discrepancies when it came to issues including reduced working hours, salary cuts and furloughed staff.

Recruitment in numbers

Between February and March 2020, according to the Covid-19 REC jobs outlook survey, employer confidence plummeted by more than 20 percentage points, although short-term demand for temps rose by 15 percentage points.

Of course, the outlook isn’t universally bleak. While retail, leisure and hospitality work all but ground to a halt overnight, with 46% of staff in those areas expected to be furloughed, demand for staff in supermarkets, pharmaceutical, medical professions, food production, cleaning and delivery soared.

Some areas of fintech and tech are also currently highly sought-after, as are those in delivery, logistics and company restructuring, alongside anyone supporting and enabling home schooling or remote working.

What about the longer term?

Of course, no one knows for sure how or when this crisis will end. But a swift return to a working life that’s exactly the same as it was pre-Covid seems a remote possibility. Some form of change is likely to be with us for the long haul, possibly permanently. Recruiters, like everyone else are having to adapt.

That could mean greater (and better) use of recruitment technology, more online interviews, more home-based working, more temporary contracts and smaller hiring budgets.

At the same time, however, the UK’s recruitment sector is strong and resilient, so it stands an excellent chance of making an effective comeback.

How we can help

At Invoice Finance Connect, we can help your recruitment business in the short and long term, so that you continue to thrive throughout this crisis and ride out any immediate financial issues, while also being poised to return to maximum capacity as soon as possible.

This also includes assisting those agencies where GRI feature as a customer, each lender will have their own approach, however there are Invoice Financiers out there that will fund this debtor and of course we use our experience to match the financial needs of the agency with the right funding partner.

We have many years’ experience working with recruiters, and offer numerous different solutions from invoice discounting, factoring to bad debt protection. We can even help you improve any deal you may already have in place with an invoice finance provider. Whatever your particular needs or situation, get in touch today to learn how we could help – we’ll discuss your options for adapting to these challenging times.

Impact Covid-19 had on Business Finance | Help with Invoice Finance | Invoice Finance Berkshire
What Impact Has Covid-19 Had On Your Business Finances? 800 533 Invoice Finance Connect

What Impact Has Covid-19 Had On Your Business Finances?

When Boris Johnson announced unprecedented restrictions to daily activities on March 23, it brought the life of the nation to an abrupt halt. As well as being a national health crisis costing tens of thousands of lives, the pandemic is also an economic emergency.

A recent Oxford Economics report commissioned by chartered accountancy body ICAEW predicted that GDP could shrink by 14% in the second quarter of this year, the biggest such decline in almost a century. It forecast the UK’s deficit could reach £290bn or 14% of GDP in 2020, the largest since World War II and exceeding even the 2009-10 previous record of 10.2%.

However, it added that recovery should be swift given the unusual nature of the cause of the decline, and that the rise in unemployment could be a relatively modest one to 7% in the year’s final quarter, due to the government’s job-protection furlough scheme.

But, equally, recovery could be hampered by any extension of the lockdown, a second wave of the virus, the ending of government support too quickly, the collapse of the Brexit trade talks or if long-term economic damage turns out to be worse than feared.

In May, the Bank of England issued a bleak warning of a 30% GDP slump with the loss of 1.5m jobs and predicted that the economy would not bounce back until next year.

Winners and losers

Amid the hardship, inevitably some firms have survived (and thrived) better than others. Media streaming service Netflix has seen a surge in subscriber numbers, while fashion firm Boohoo increased its year-on-year sales in April thanks to high demand for smart tops for Zoom calls, alongside leisurewear. This despite footfall in British shops imploding by some 90% since the beginning of March.

At the same time, Laithwaite’s Wine increased its prosecco sales in April (up 117% year-on-year). Demand for smaller bottles was particularly high as people enjoyed a glass of fizz while chatting to friends and family online.

Anything related to home-based exercise and fitness has also proved popular, from apps and classes to clothes and equipment. The Tone & Sculpt app, for example, saw an 88% growth in downloads this spring. Similarly, those selling goods for home crafting and baking have done well.

Interestingly, online retail giant Amazon has said it could post its first losses in five years, its 28% rise in income offset by the costs of hiring 175,000 extra staff, overtime, PPE and disinfecting its warehouses.

Supermarkets have posted rises in sales, following initial panic buying and stockpiling, while Morrison’s has warned trading remains ‘highly volatile’.

Of the sectors struggling, education is one of the hardest hit, with a 90% reduction in output according to the Office for Budget Responsibility (OBR). Meanwhile, the hospitality, construction and manufacturing industries have all lost more than half their output.

Adapting to survive and thrive

Clearly, many companies have adapted, shifting business online, offering home deliveries and so on. One gluten-free café in Reading has been delivering kits for making donuts at home kits, as one example.

Meanwhile, the Bread Ahead bakery in London’s Borough Market, found new ways of keeping its three stores going. Live Instagram baking sessions led to 25,000 new followers in five days after restaurant orders halted, while online sales and collections from stores have increased.

Looking to the future

Clearly, reopening a business post-lockdown comes with its own costs and risks. Cashflow may be tricky for companies that have not been trading recently. Previous customers may not all return immediately, and health and safety measures may restrict footfall on your business premises.

There may be additional expenses like staff training, protective equipment or signage. Equally, business could be affected if you supply a sector such as the travel industry and there is limited demand for what you offer.

Rather than just picking up where you left off, you may need to combat a potentially lengthy period of uncertainty. That may mean what Accenture calls an ‘active reinvention’ of your brand, perhaps with more agile operations and variable cost structures.

Many will have to adapt to a new and changing situation at speed.

How we can help

Support for businesses is available from the government in various forms, including relief for income tax, VAT and business rates.

The government’s Job Retention Scheme, or furloughing, pays 80% of salary up to £2,500 monthly, provided staff do not work for the employer while furloughed. It began on April 20, and after two weeks nearly a quarter of UK workers had taken up the arrangement. It’s currently due to last until the end of October.

However, none of these schemes can last indefinitely. Once the furlough programme ends, employers will be able to bring back workers full or part-time, pay for them to be furloughed for longer or consider redundancies.

Once the various sources of finance are wound down, any loans or other bills need paying, and it may not be possible to do this immediately. Businesses need a cashflow plan in place now to improve cashflow once the government help stops.

At Invoice Finance Connect, we have more than two decades’ industry experience so are ideally placed to connect you with the best ongoing source of short-term and longer term funds for your business, whether that’s invoice finance, supply chain funding, asset finance, trade financing or anything else.

Contact us to discuss your specific issues and discover what support is available and how we can assist.

The Essentials of Moving Providers | Invoice Finance | Finding New Invoice Finance
The Essentials of Moving Providers 800 533 Invoice Finance Connect

The Essentials of Moving Providers

Historically business’ have worried about the ease with which they can transfer providers, whether it be utilities, banking or invoice finance. They put off investigating other options, despite not being happy with the level of service they are receiving, simply because they are worried about how much disruption it will cause their business.

We all know that in today’s business environment, it is more vital than ever that the day to day running of the business is efficient and hassle free.

Did you know:

  • Invoice finance is used by over 40,000 businesses across the UK, covering numerous sectors and including organisations of all sizes.
  • Invoice finance is a simple and effective way to free up cash.
  • Setting up invoice finance is straightforward and hassle free.
  • Switching providers, if you are not happy with charges or level of customer service, can be quick and hassle free.
  • When switching providers, your new lender will help you out with the administration, contacting your customers (where applicable) to provide them with the new payment details and ensuring the process is effortless.

Switching providers couldn’t be simpler. With a reputation for our straightforward approach, Invoice Finance Connect help and ensure that implementation is quick, efficient and we pride ourselves on being able to provide a seamless transition from any existing arrangements.

So why not contact us on 01635 283089 to see how easy it is to switch to Invoice Finance Connect.

What Is Invoice Finance | Factoring | Invoice Discounting | Invoice Finance Advise in Berkshire | Invoice Finance Connect
What Is Invoice Finance? 800 533 Invoice Finance Connect

What Is Invoice Finance?

No matter what type of business you own or work in, there will always be companies striving to outperform you or trying to offer a more competitive edge, enticing your clients to switch suppliers. Having a competitive edge really is a necessity, especially today in an ever-changing business landscape.

Often a business is asked to operate by selling their products or their services to a customer on credit terms, where payment will be in 30, 60 and occasionally 90 days after product shipment or project completion. Whilst this is an ideal solution for your clients, it can often be detrimental to the business, having a huge impact on cashflow and having the ability to meet day-to-day costs. This is where the benefits of invoice finance really come into their own. In essence it provides you with the necessary cash that you need in your business as soon as you issue your invoices.

Key facts about invoice finance:

  • In the main Invoice finance is delivered through 2 products. The first is Factoring which is a disclosed service with the customer base being fully aware of the service. The second is Invoice Discounting, which is predominantly a confidential facility without the customer base being aware.
  • In essence, with Factoring, the Invoice Financier looks after a company’s unpaid invoices, whereas with Invoice Discounting the responsibility of the sales ledger management is retained by the business.
  • You get immediate access to cash as soon as an invoice is raised.
  • When a customer pays your invoice, you will receive the balance of the face value of the invoice, minus the lender’s fee.

Key advantages of using invoice finance are:

  • You can improve your cashflow and working capital without having to wait for your customers to pay your invoices promptly.
  • Immediate access to funds means you can run your business by paying suppliers on time, fulfilling payroll obligations, purchasing new equipment or facilitating further expansion.
  • There is no need to offer property assets as a form of security.
  • Packages can be tailored to individual business needs.
  • Often an approval process is relatively painless and quick, on occasion they can be approved within 48-hours.

Typical examples of where invoice finance is required are:

  • Recruitment companies providing temporary staff. Often employees are contracted on a weekly basis, so wages need to be paid every 7-days. However often a client agreement states payment terms of 30 days + so an Invoice Finance facility would accommodate this type of cashflow cycle.
  • Food and drink manufacturers who supply some of the leading chains of Supermarkets have to pay their suppliers on 30-60- day terms, whilst waiting up to 90-days for payment from their customers.
  • Young businesses who are going through a quick and unexpected growth period due to business success will often feel the pinch. Cashflow needs increase quickly to accommodate for the business expansion and invoice finance is often key to maintain and healthy and stable platform for success.

We regularly get asked by businesses already using invoice finance if we can assist them, this may be due to issues with their current provider or indeed that their funding has been restricted. Here at Invoice Finance Connect, we are always happy to offer impartial and independent advice to ascertain if we can assist you.

If you have a question or need some help in relation to Invoice Finance, then our team will be delighted to help. For a free consultation please call us on 01635 283089.

Murray McIntosh – Client Case Study 800 533 Invoice Finance Connect

Murray McIntosh – Client Case Study

Client: Murray McIntosh
Contact: Adam Cave
Position: Managing Director

Their Need:

Our client is a recruitment business that has been trading since 2014 and during this time they have successfully established themselves in a number of sectors such as Engineering, Financial, Cards, Payments/Transactions, Policy, Public Affairs & Communications. Initially, the company started out offering permanent placement to these industries, however very quickly also offered temporary placements to their customer base.

Given the nature of temporary recruitment and the working capital requirement it dictates, the business has needed to utilise Invoice Finance. This has provided them with the cashflow it needed while allowing the business to grow without any constraints.

Why Invoice Finance Connect:

“Invoice Finance has always worked well for us, it has met our cashflow obligations and provided us with the necessary funding to help us achieve our growth. We started using this type of funding from the early part of 2015 and did not have any issues until the latter part of 2016 when we suffered a bad debt of £200k. Naturally, the bad debt was not our lenders fault, however their handling of the issue and the impact it had on our cashflow was far from satisfactory.

When we advised our lender of the bad debt, they immediately reduced our funding and offered us nothing to soften the blow. Luckily for us, part of the debt was covered by credit insurance, plus our historical profitable trading had meant that we were not utilising our Invoice Finance facility that much, consequently we were able to take the hit of the bad debt and the impact of the action of our then funding partner.

My lenders actions and attitude towards me really did make me question my relationship with them. We knew Dan Bowsher as he helped us set up our Invoice Finance arrangement back in 2015 and after looking him up on LinkedIn we could see that he had set up his own independent brokerage. We met with Dan and explained our dissatisfaction with our current provider, he clearly understood the issues we had gone through and accepted the remit to find us a new provider that could offer the expected levels of customer service.

Dan came back to us with a number of options, from which we chose a new lender whose entire ethos was built on delivering a customer centric proposition. Our new client manager was running a portfolio of 25-30 clients, compared to 45-50 with others, the actual administration of the facility was going to be way less labour intensive than what we had previously and not only that it was going to cost us less too, so we were extremely happy with the new lender than Dan had introduced us to.

We have been with this lender for over a year now and I am pleased to say that we have a really good relationship with them and they have delivered excellent levels of service at all times.”

Ongoing Support:

“We got in touch with Dan again recently, as we have a ventured into a new sector. We needed some additional funding to help us recruit a new team of people to focus on this area and launch a new division. Dan has introduced us to a loan provider that has given us the capital injection we needed to make this work.

We have a really good relationship with Dan, he listens to us and understands our needs, always responding with solutions that cater for our requirements. I would strongly recommend that anyone that is either using or thinking of using Invoice finance to get in touch with IFC, you will not be disappointed”.

Click here to download a copy of this Case Study.

 

Restrictions Within Invoice Finance Facilities 800 533 Invoice Finance Connect

Restrictions Within Invoice Finance Facilities

When we are approached by a business that is already using Invoice Finance, it is usually due to the fact that the facility is being restricted by their existing lender. Not only does this hinder the cashflow requirements for the company but it can affect the growth aspirations.

These restrictions are typically as follows:

  • Overall Facility limit
  • A concentration or funding limit against a specific customer
  • The overall advance limit is too low or has been reduced
  • Level of overseas debt that the existing lender is prepared to fund

If any of the issues highlighted above feature on your Invoice Finance facility and they cannot be resolved then you need to seriously consider moving to a new lender.

There are so many different providers of Invoice Finance and each lender has their own unique credit policy or approach to how they do business. What might be an issue for 1 lender and is reason for a restriction to be placed, might not be for another.

Invoice Finance Connect was approached by a recruitment business during the early part of 2017, who were being restricted on their overall facility limit. The lender at the time would not increase the facility limit as the financial performance had declined in the previous year compared to prior years.

There was however a reason for this, which could all be explained along with producing forecasts, which showed that the business would bounce back well during the current year. Unfortunately, the existing lender would not change their stance and would not increase the overall funding limit. Consequently, Invoice Finance Connect introduced them to a new lender who understood what had happened historically and demonstrated the faith in the management team by giving them the facility limit that they needed, which met the cashflow requirements of the business moving forward.

This business has been with their new lender for nearly a year now and both parties are extremely happy and the business has gone from strength to strength.

If any of the issues highlighted are a feature of your current facility then please do get in touch with us. They can have a huge impact on cashflow and of course we use our knowledge and experience to help you find a lender who will work with you to ensure you are getting the full benefits from your facility.

Contact us for more information on 01635 283089 or email us at info@invoicefinanceconnect.co.uk.

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