A good Invoice Financier?

[robbie33]

Hi guys, I'm new here.

I was just wondering whether anyone can recommend a good invoice finance provider. Or if anyone in the know could give me a summary of the invoice finance providers out there and what they're each best for etc etc.

Any help would be greatly appreciated, thanks!:redface:

 

[Mark CFL]

Hi Robbie33

Choosing the right invoice financier depends on a numbers of factors (excuse the pun) such as what size business you are, what industry you are in, and what your requirements are in terms of facility size and type.

There are a number of specialist factoring brokers who will be able to give you a good overview. Both the 'Ians' on this forum know what they are doing.

If you are an owner-manged business with sales turnover between £250k and £5m then I would certainly be interested in seeing if we can assist.

 

[Anglia Finance]

Robbie33

A good question you but will struggle to find an independent view on an open forum as this depends on many factors in your business and also not only the best funders but the office / 'salesman' that you see. By far the best thing to do is speak with an independent brokerage (such as our firm) as they should get an understanding of your business then negotiate a deal on your behalf. As commissions are paid by all funders to brokers you should get this service for free and leverage a brokers relationship to get a much better deal including the smaller print terms.

I'd be more than happy to look at your circumstances, by all means give me a call in the morning or send me a message.

Regards

Liam

 

[termsandconditions]

There are alternative and much lower cost options to liberating cash from your debtors. For a start, brokers of such services are known to receive 25% of all the future income that an invoice discounter or credit factor receives from your account. So there's a lot of fat in the fees from the 'get-go'.

If you care to whiz over a copy of your aged debtor report, I'd be happy to give you a rough indication of what might be possible.

Best Regards

 

[Ian J]

brokers of such services are known to receive 25% of all the future income that an invoice discounter or credit factor receives from your account.

1) Not true

2) As the factoring company pays the fees of the broker there is a misconception that if someone approaches the factor direct they would get a better deal as no commission would be payable therefore they would receive a cheaper rate. In reality I get better rates for my clients than anyone would by going direct for the simple reason that the factoring company would prefer to keep the dozen or so introductions per month that I give them to making a few extra quid on a one off that will never generate anything further for them.

 

[Anglia Finance]

1) Not true

2) As the factoring company pays the fees of the broker there is a misconception that if someone approaches the factor direct they would get a better deal as no commission would be payable therefore they would receive a cheaper rate. In reality I get better rates for my clients than anyone would by going direct for the simple reason that the factoring company would prefer to keep the dozen or so introductions per month that I give them to making a few extra quid on a one off that will never generate anything further for them.

Whole heartedly agree with Ian's response, price will certainly be cheaper by using a good broker and saying a broker receives a quarter of the lifetime service fee is just an incorrect blanket statement.

In my opinion the most important reason for using a broker is not the headline price but ensuring you get the best terms. Most important are issues such as termination clauses, minimum fees, trust account fees, personal guarantee levels, debt turn targets, etc. etc. etc. Most invoice finance issues I see could have be avoided by ensuring a good broker negotiates these points at the outset rather than realising the problem when it occurs.

 

[termsandconditions]

1) Not true

2) As the factoring company pays the fees of the broker there is a misconception that if someone approaches the factor direct they would get a better deal as no commission would be payable therefore they would receive a cheaper rate. In reality I get better rates for my clients than anyone would by going direct for the simple reason that the factoring company would prefer to keep the dozen or so introductions per month that I give them to making a few extra quid on a one off that will never generate anything further for them.

Not true? Hmmm, really? If it's not true, I would prefer to be disabused with the actual standard industry rate of commission.

I was reliably informed of the 25% rate by an asset finance broker who introduced lots of credit factoring and invoice discounting business to lenders so I must be there or thereabouts +/- 5%. I know separately that there's a standard commission across the industry. If it's not a secret, I would really like to know what the commission rate is. Might enter the market myself, especially if it's higher ;-).

Best Regards

 

[Ian J]

I would really like to know what the commission rate is. Might enter the market myself, especially if it's higher ;-).

It was reported last year by NACFAB that with the decline of income from the mortgage market many of their members were trying to get into the invoice finance market and I treated that announcement with horror as the last thing the SME marketplace needs is brokers who don't know what they are doing and therefore giving poor advice.

 

Not true? Hmmm, really? If it's not true, I would prefer to be disabused with the actual standard industry rate of commission.

I was reliably informed of the 25% rate by an asset finance broker who introduced lots of credit factoring and invoice discounting business to lenders so I must be there or thereabouts +/- 5%. I know separately that there's a standard commission across the industry. If it's not a secret, I would really like to know what the commission rate is. Might enter the market myself, especially if it's higher ;-).

Best Regards

Presumably by the same token you will expect yourself & every one else on here to reveal their gross margins?

Judging the value of a product or service on the basis of what someone earns out of it is tabloid fodder and is consistently unreliable. Simple test - get a quote and see if your broker can match or beat it (also see what the broker can add simply by understanding the right questions to ask). First Direct Insurance famously pay no commissions - are they cheaper than other insurers - plenty on here will tell you not..

 

[RailyPhill]

A good broker will always be the best place to start, moreover, and I feel this is crucial, a broker should get to know your business and then identify potential areas of concern or opportunity for the future.

A good broker will be looking to add value to your business.

 

[Strider81]

As a Commercial Relationship Manager for a bank, the advice given on here is all quite correct.

They key to good cash flow financing is getting in touch with the right people who take the time to understand your business.

My employer does not use brokers, however I am sure that brokers are only successful in this market space if they have access to good invoice finance managers or the referral network wouldn't work!

My advice is take the time to see 2 or more different providers and weigh up the cost vs facility benefits as if you want a decent facility and good service it is most definitely going to cost you.

 

[termsandconditions]

....if you want a decent facility and good service it is most definitely going to cost you.

I couldn't have said it better myself.

There are other, more cost effective ways to get the cash in faster, OP.

Best Regards

 

[Ian J]

There are other, more cost effective ways to get the cash in faster, OP.

I presume that you are referring to something that you're flogging

 

[srirainbow]

Hi to all Iam new for this forums ,may i know the details about invoice financier , What is it meaning & where its used,. anyone of the expertise can help me

Thanks for joining me us, Please keep in touch .,,.,.,.,,.,

 

I couldn't have said it better myself.

There are other, more cost effective ways to get the cash in faster, OP.

Best Regards

I would broadly agree with this; in fact you can download a free guide to credit control from our website.

However, assuming you have looked into this (and in the real world, waiting 60-90 days for payment is often an inherent term of business) then invoice finance is a great funding route for a growing business.

 

[KJL126]

Hi, we are a Mster Commercial Brokerage working whole of market and can honestly say that Cash flow Finance is great for some companies and a great mistake for others. Similary, there are some good providers out there and some I'd advise avoiding unless they're your last chance.

Happy to discuss options with anyone, and as I'm very new to this site, i don't want this to be interpreted as a sales pitch, so happy to assess and advise free of charge.
cheers Keith

 

[KJL126]

Hi Robbie33,

sorry about this but I'm brand new to the site and a touch Naive, I read your post re invoice finance, some of the responses are spot on, but all who have responded have taken time to try to help you.

The confusion sets in when I look at your profile and see you work for Skipton Business Finance one of the latest lenders to lump into Cash Flow Finance. If this is so why are you asking about products you sell?

I can't imagine Skipton Building Society encourage this as a route to staff training, surely it must be comprehensive than this? So my guess is it's some form of marketing for your business/ sales drive. Or I'm totally misreading the profile you've entered.

Please let me know if I'm wrong I'll gladly come to Skipton and buy you a beer.

Keith

 

[Adarsh Shah]

A good broker will always be the best place to start, moreover, and I feel this is crucial, a broker should get to know your business and then identify potential areas of concern or opportunity for the future.

A good broker will be looking to add value to your business.

I am an independent consultant / broker with 5 years plus experience.

Contact me just to have a chat.

0208 904 9773

cashflowconsultancy . com

 

[pennystockshark]

It will be true that Single invoice finance really helps business operators who've been rejected by their banks.

 

[internetspaceships]

It will be true that Single invoice finance really helps business operators who've been rejected by their banks.

Marvellous reply....

 

[Mark CFL]

Self-promotion is all well and good, but it should be a by product of providing a real and informative response to a real question.

 

[Ian J]

.............

 

[Ian J]

I'm not sure that it was self promotion as I think it was just garbage posted in the hope of reaching a magic postcount that would allow him a hyperlinked signature but unfortunately he picked the wrong forum to spam