Hitachi Invoice Finance

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Lee Gauntlett

Free Member
Mar 12, 2019
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  • #1
    Hi all, I am new here and your experience and advice is very welcome - but please be gentle. I recently started a new Ltd Company importing marketing goods from China. My first quarter was slow but was expected for Dec, Jan & Feb as it is a quiet time of year for the industry - however this month has been amazing and it is carrying on into next month! My cashflow is becoming stretched and I do not have the £££ to keep up with the invoices my factories are sending and risk upsetting customers because I can not fulfill there orders! Also I am having to turn down good, large business because I can't afford to pay the Chinese factories. In this light, I have made an enquiry with Hitachi Invoice Finance, who have offered the opportunity on their Inspired Cashflow at 4% fee. I know this is a lot over a £150k estimated turnover but the way i see it is it will help me grow the business at cost? Speculate to accumulate? Does anyone have any experiences the same as mine and can share a happy or bad ending using Hitachi Invoice Finance or Invoice finance in general? Thanks - sorry for the waffle!
     
    Ian J

    Ian J

    Free Member
    Nov 6, 2004
    7,440
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    Midlands
    factoringsolutions.co.uk
  • #2
    I have donkeys years of experience but you would expect that doing what I do.

    The facility that you have been offered will provide funding as soon as your goods have been delivered but there are one or two facilities around that will also fund you on firm customer order by paying the Chinese factory in your stead.

    Obviously this costs a bit more as the factor is taking a greater risk but you have to decide how profitable the extra cash would be to you
     
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    Dave Fitzgibbon

    Free Member
    Feb 6, 2019
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  • #3
    While I do not have direct experience of Hitachi, have a quick read of
    • Invoice Factoring (Ifac) ) – This is a typical facility whereby the Lender will do all your collections on invoices for you. Very useful if you have a large debtors list and don’t have an in-house credit controller.
    • Invoice Discounting (ID) – Exactly the same as an Ifac facility however, you will look after all your credit control.
    • Confidential Invoice Discounting (CID) – A confidential ID facility whereby none of your suppliers or debtors will know of you using such a facility.
    • Selective Invoice Finance (SIF) – This is where you can select specific invoices to have Factored in order to raise capital, the repayment works the same as a standard Invoice Finance facility.
    • Spot Factoring - You choose one large invoice usually upwards of £50,000 as security to raise capital for the business
    Shop round and see where you can get the best deal
     
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