Process & criteria

Invoice Finance Process & Criteria

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ABC FinanceInvoice financeProcess & criteria
Gary Hemming

Author: Gary Hemming CeMAP CeFA CeFA CSP

20+ years experience in invoice finance

Our job is to make the process of securing the best invoice finance deal quick and easy. It’s a role we pride ourselves on excelling in. We manage the whole process for you from start to finish to make sure you save as much time and money as possible.

Read on to find out how we can help you or fill in the form to talk to an expert, and when you’re done, why not compare the latest products or check out our in-depth guides.

The Process

We offer you two great options to find the best deal. You can talk through your needs with an expert or compare the latest rates and apply online straight away. If you decide to manage the process yourself, it will run as follows:

1Enquire online or give us a call on 01922 620008. Once you fill our online form, we’ll call you straight back and talk through your current circumstances and what your goals are. When we ascertain what kind of product would be best suited to you, we will scour the market for the best possible terms for your business.
2We will issue the initial terms within two hours, letting you know how much we could release to you in principle. At this point, we will let you know what documents are needed to fully submit your application.
3If you’re completely happy with the information we’ve given you so far, we will start the application with the lender. During the application, the lender will usually want to meet with you to finalise the application prior to a full credit backed decision.
4Once the application is approved by the lender’s credit committee, the full terms are issued which, if agreed, will form the basis of your invoice finance agreement.
5Once the agreement is signed and returned to the lender, the facility will be live and you will be free to start drawing down funds as needed.
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Criteria

Each lender will use their own assessments and criteria to make a decision on your invoice finance application. We will cover the basic criteria points that are associated with taking out a facility.

Turnover

We will fund businesses with an annual turnover of £30,000 or more per annum for invoice factoring products. Invoice discounting facilities will usually require a turnover of at least £250,000.

Industries served

We will consider funding companies in any industry, as long as they are invoicing their clients. Some industries will be considered higher risk and may see some difference in the terms offered due to this, others are very popular with lenders.

Some of the more popular industries include:

  • Manufacturing firms
  • Recruitment agencies
  • Construction
  • Export businesses
  • Transport
  • Marketing agencies
  • Wholesalers
  • Security firms

Your customer base

The chosen lender will want to know more about the customers that you are issuing your invoices to. All customers will be considered, but where your customer base is made up of strong businesses, who make their payments on time, your application will be considered stronger.

A spread of customers will always be preferred to one or two large customers. Where only a couple of customers make up a large proportion of issued invoices, some lenders may restrict lending due to concentration limits.

Payment history & bad debts

Where your customers are failing to pay on time and your aged debtor analysis shows a record of bad debts, credit control will be key.

If your record of managing payments is poor, the lender may be more inclined to lend if they will be taking over this function. In addition to the raw figures, most lenders will consider whether the trend is positive or negative and what systems are in place for managing outstanding invoices.

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Locations

We can raise funds for almost any purpose. Popular uses include:Funding future growthManaging business cashflowRelease funds quickly from unpaid invoicesAssist with the credit control processSwitch from another provider to save fundsSwitch from another provider to protect customer relationships

Locations

We offer invoice finance to companies throughout the UK, with no geographical bias. We can even fund transactions for companies who are issuing invoices to non-UK businesses.

Credit history

Although most lenders prefer to lend to clients with a strong credit history, we have a number of lenders who are happy to consider a range of circumstances.

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