We have reduced a clients service fee by over 50%

Posted on 13th December 2011 by

We have been working with a print company who were using their own bank to provide invoice finance facilities.

They enquired via our website about reviewing their facility.

We discovered that their bank had essentially been overcharging them for the invoice finance facility. This was as a result of their turnover having doubled since they set up the agreement.

By undertaking a full market review we not only improved the structure of the facility but also saved our client over 50% on their service fee.

If you have an existing facility it is imperative you review it on a regular basis. At Smart Factoring Quotes we would be delighted to assist.

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FPB Launches plan for growth

Posted on 12th December 2011 by

The Forum of Private Business has come up with a 3 pronged attack for growth.

  1. slash government red tape
  2. reduce the complexity of our tax ststem
  3. halt the rising fuel and utility prices

This was launched after the announcement that Britain’s GDP had grown by just 0.5% in the first three months of the year.

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Latest Client – Single Invoice Factoring – Recruitment

Posted on 12th December 2011 by

Smart Factoring QuotesOur latest client is a permanent recruitment company who was looking to access some cash for a short period of time.

We fully explained their options and the associated costs and they decided a spot factoring facility was the best solutions for them. The facility was provided at a 90% prepayment. The factored a single invoice and there was no contractual tie in or minimum fee.

If you have a requirement to factor a single invoice contact Smart Factoring Quotes today on 0845 863 0738

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Understanding Factoring Costs

Posted on 8th December 2011 by

Factoring costs can be quite difficult to understand if you do not know what to look out for. There is a page on the site advising people how best to minimise factoring costs. I thought it might be an idea to look at what fees you should be aware of when looking at setting up a factoring facility or comparing factoring quotes.

Service fee – this is usually quoted as a % fee that is applied to the gross value of each invoice. The annual cost is calculated by applying it to your gross annual turnover. If the service fee is 1% and your gross annual turnover is £1m then the service fee will be £10,000. Please be aware of minimum fees. Please also be aware that this fee will be applied to the value of the ledger at take on. Some lenders will quote a flat annual fee.

Discounting Fee – this is essentially the cost of borrowing and is quoted as a % over base rate. Please look out for what base rate is being quoted (i.e. Bank of England Base Rate or LIBOR) and please understand if their is a minimum base rate that applies.

Arrangement fees – this is a fairly new practice where lenders are charging an arrangement fee.

CHAPS fees – this is a charge for same day transfers to you from the factoring company. I have seen these range from £7.50 – £40.

Audit Fees – lenders may undertake periodic audits on your business. Some lenders offer this for free as it is covered by the service fee. Others charge seperately for the service. It is important to consider what each audit costs and what the frequency of those audits will be.

Survey Fee – some lenders will charge you for a prelend survey.

Minimum service fee – lenders will typically quote a minimum service fee. Should your turnover multiplied by the turnover not generate the minimum fee this minimum fee will be applied.

Minimum Base Rate – as mentioned above lenders will quote the discounting fee as a % above base rate. However, some lenders have a minimum base rate of say 3%. If the base rate used is below this then the minimum base rate will apply.

This is in no way an exhaustive list of fees. It is important you understand all the fees that will be applied before signing up for a factoring agreement. Ask your lender for a full list of fees/dispursements.

 

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Bank Invoice Finance Providers – are they all the same?

Posted on 8th December 2011 by

I often listen to people discussing whether they should use a bank owned invoice finance provider or an independent provider.

Certainly among the independent providers there is a wide variety of products, credit appetite and service levels. But what about the bank owned factoring companies?

Well they are similar in that they mainly target their own banks banking clients. Some target non bank customers more than others. In terms of service levels it would be fair to say that it can vary from client manager to client manager and regional office to regional office never mind bank to bank. Pricing can also differ dramatically between the banks.

The short answer is that the banks do differ dramatically and depending on your requirement the likelihood is one bank will be better suited than another.

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Selective Factoring or Spot Factoring

Posted on 5th December 2011 by

Selective factoring allows a business to choose which debtors to factor. They then notify all invoices for that debtor to the factoring company.

Spot factoring allows you to choose individual invoices to factor. This can be a one off invoice or a batch of invoices.

The major differences between the two are price and flexibility.

Spot factoring is very flexible and you can turn the tap on and off as you see fit. However, the interest rates can be high. Very high – 80% interest in some instances. That said if you have a short term issue and want to factor a single invoice for 30 days it could be your cheapest option.

Selective factoring requires a contract to be entered into and while you can choose the debtors you wish factor you are required to notify each invoice. The pricing structure is akin to a traditional factoring facility so if you are looking for a medium to long term solution selective factoring should be cheaper.

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Factoring – Outsourced Credit Control

Posted on 5th December 2011 by

While factoring is a valuable source of working capital for businesses it is also an excellent way of reducing the administration burden a business owner can face. By outsourcing the credit control function you are putting it in the hands of the professionals.

Factoring companies have systems that can easily send out reminder letters and end of month statements. Combine this with their experience in collecting in debts and you will probably agree they are well placed to provide your credit control.

Hatta siparişinizi bu şekilde geçerseniz müşteri hizmetleri sizlere sildenafil daha ayrıntılı bir şekilde bilgi sunacaktır. Olası yan etkileri piyasadaki diğer çoğu ilaç gibi, generic cialis dapoxetine de bazı yan etkilere sebep olabilir. Hekimliğin doğuşu, anadolu�da kendieczanesi hekimlik, eski tıp fakülteleri: insanlık tarihi kadar eski mesleklerden biri de hekimliktir. Sorusu yöneltilirken, haydarpaşa numune hastanesi için işgal edilen arazisi üzerinde hızla depreme dayanıklı bir poliklinik inşa edilmesi ve yeni bir hastane inşaatı önerildi. Cinsel ilişkiye hazırlık sürecinde tercih edilebilir ancak gerçek tedavi yöntemleri değildir. Yaklaşık 1 lira değerinde 1 kutu cinsel uyarıcı ilaç aldılar.

It is however worth noting that different companies operate in a very different way. Some will only send out letters and statements, others will telephone your largest debtors and others will chase every single invoice that becomes overdue by telephone. It is important to understand this when comparing any quote.

Ask yourself what type of service you really want and whether or not that represents good value?

By outsourcing the credit control it frees up more time for you to do what you do best which is growing your business.

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Factoring in Ireland

Posted on 5th December 2011 by

Smart Factoring Quotes Ireland is proud to be supporting businesses in Ireland in what are very difficult times.

Our .ie website is aimed at helping Irish business owners source cash flow solutions for their businesses. If you or any of your clients are looking for factoring in Ireland make Smart factoring Quotes Ireland your first port of call.

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Latest Client – Ventilation Designer and Manufacturer

Posted on 3rd December 2011 by

Our latest client is a manufacturer of ventilation systems. They are sheet metal fabricators that specialise in supplying the catering industry with ventilation systems.

They wanted to explore a few different options including spot factoring, selective factoring and whole turover factoring. After we had fully explained their options they felt that a whole turnover factoring agreement was the best option for them.

The facility was set up within a week after they made their decision.

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Latest Client – Engineering Company

Posted on 3rd December 2011 by

Smart Factoring QuotesWe were recently asked to help an engineering business who wanted to leave their existing funder who was a high street bank.

The business taking the opportunity to implement a new strategy which was to focus on higher margins and employ a sales force to attract new customers.

We were able to put in place a factoring facility with an 85% prepayment which was cheaper than the high street bank. In addition we were able to secure an asset refinance facility that provided a valuable cash injection into the business.

For the engineering company factoring was an ideal solution as not only did it provide essential working capital it also provided an outsourced credit control function.

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