Invoice Factoring Consultants
 

Invoice Factoring
Consultants

Invoice Factoring Consultants

Getting the best factoring agreement can be very difficult for a company acting on its own. Our factoring consultants provide the expertise you need to select the most appropriate factoring service for your needs. A factoring consultant will also ensure that you don't fall foul of the pitfalls described below.

Once we have assessed your needs we act as a factoring broker in order to secure the best deal for each particular set of circumstances. Best of all, our services are free to your business.

Potential Invoice
Factoring Problems

Consultants benefit

Minimum charges

1% of a £200/£300,000 turnover does not sound too bad but beware, most invoice factoring companies have a minimum charge of at least £6,000.

Invoice Factoring ConsultantsWe know the factoring companies that specialise in the SME market and their charges only start at £2,000 per annum.

Advance Levels
Do not believe what the glossy brochures tell you. Advance levels up to 90% are the exception, not the rule. Factoring companies conduct regular audits during which they will look at the levels of contras', credit notes / returns, invoices over 90 days old and customers exceeding their credit limits. Once these are taken into account the true level of advance is more typically 70/75%. You need to be realistic about this.We can help you find invoice factoring companies that will accept three or six month's notice from day one, so reducing any financial exposure.
Minimal Annual Fee (MAF)
A relatively new innovation in the invoice factoring industry, the use of MAFs has increased rapidly in recent years. Typically a minimum of one year is stipulated but we have seen agreement's spanning two and three years. An initial one-year period is not unacceptable with three months notice thereafter, but make sure the break fee is pro-rata after the initial period.We can help you find an invoice discounter that will accept three or six month's notice from day one, so reducing any financial exposure.
Concentration Levels
Most factoring companies like to see a wide spread of customers with no one representing more than 30% of turnover. If this happens they will disallow the excess with potentially disastrous consequences for your cash flow.
This is not much help to new start-ups with few customers or growing young companies looking to take on all the business they can.		We know the invoice factoring companies that will happily accept concentration levels of 100% and we can put you in touch.
High Export Content
Many invoice factoring companies are not comfortable with an export level of more than 20-25%. Others will not fund exports at all.We will introduce you to a number of market specialists who accept export levels of 70-80% and up to 100% where appropriate.
Service charge
This is levied on turnover including Vat. Notice how many of the invoice discounters web sites and literature do not make this clear.We alert clients to all costs up front to enable an informed decision to be made.
Miscellaneous Charges
These include quarterly audit charges, electronic transfer fees, bank charges and re-factoring fees. You need to check all of these out carefully before signing any invoice factoring agreement.We do all the leg work for you to ensure you get the best package.
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