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Single Invoice Finance

ACF completes single invoice finance transactions for South East roofing company: £1300 Advance

ACF completed the purchase of two invoices worth a combined £2500 for a South East roofing company.  Both invoices were for under 30 days and purchased in separate transactions.  Funds were released by ACF within minutes of document approval.  Here's what the company's director had to say about ACF's single invoice finance service:

"I would like to honour what a great helpfull service this has been for my business, with such little help at the write [sic] time my busineess has improved and its with many thanks to Mr Singh and his finanance company such a great way of financing your business at very low cost" 

ACF completes single invoice finance transactions for South East online retailer: £3263 Advance

ACF completed the purchase of two invoices worth a combine £3263 for a South East online retailer.  Both invoices were for 30 days.  Funds were released by ACF within minutes of document approval.

ACF completes single invoice finance transaction for London recruitment firm: £1462 Advance

ACF completed the purchase of two invoices worth a £1140 each for a London recruitment firm.  One was for 45 days the other 90 days.

ACF completes single invoice finance transaction for London media firm £5250 Advance

ACF completed the purchase of an invoice worth £6000 for London media firm, PWR Media Ltd.  Unusually, the invoice was 188 days to settlement, illustrating the flexibility and willingness of ACF to purchase long-dated invoices. 

PWR director Paul Williams says:

“'ACF provide a prompt, efficient and friendly service that has helped us provide credit to  existing clients whilst increasing our own business cash flow. I would choose ACF over an overdraft or small business loan from any other source'.   

ACF completes single invoice finance transaction: £454.50 Advance

Applied Corporate Finance has completed a single invoice finance transaction.

A SME was paid £454.50 (94%) by ACF for its £484.50 invoice, and the balance is due in 39 days when the invoice settles

ACF completes single invoice finance transaction:£612 Advance

Applied Corporate Finance has completed a single invoice finance transaction.

A SME was paid £612 (85%) by ACF for its £720 invoice, within 12 hours, plus £63 when the invoice settles.
ACF's fee for providing 175 days of cashflow? ….Just £45

Unscrupulous invoice finance companies drive SMEs into administration to collect facilitytermination fees

The Telegraph reports that some unscrupulous invoice finance companies are favouring SME administration rather than saving the SME in order to collect hefty termination fees.  Read more at this link:

http://www.telegraph.co.uk/finance/yourbusiness/9482017/Invoice-finance-firms-profit-from-company-failures.html

10% of SMEs owed £50000 in late payments

National late payment debt now totals £30.2bn across the UK, with one in 10 SMEs saying they are owed a staggering £50,000 or more in overdue payments.  This is according to new research by Bacs Payment Schemes Ltd, which also found that small companies are now having to wait an average of 38 days – almost eight working weeks – before they see any money, with more than half (58%) of the country’s 1.7 million SMEs saying that large companies ignore agreed payment terms and choose when they want to pay up.

Business owners are clearly feeling the pressure; almost a quarter (23%) of those reporting overdue settlement said they were concerned about the impact that outstanding debts will have on their company.

The retail and distribution sector is being hit the hardest. Almost 60% of those surveyed said they were being paid late, with average outstanding payments of £43,000, totalling £12.3bn overdue for that sector alone.

Frustratingly, when chasing late payment, almost one in five SMEs (18%) were simply told the customer had either forgotten to pay or just hadn’t got around to settling the bill.

“Just short of a million of the country’s smaller companies are facing a late payments burden, with potentially serious implications for their business.

“Waiting eight working weeks after a payment is due before receiving the money could be catastrophic for vulnerable companies, particularly at a time when the economy is struggling and cashflow is key." BACS

http://businessmoneynews.net/index.asp?ItemID=2193&rcid=75&pcid=69&cid=75

 

Suppliers face delays on invoice payments

Large companies are deliberately delaying paying invoices to their smaller suppliers, and adding to the misery, they are seeking discounts.

http://www.thisismoney.co.uk/money/news/article-2290685/Debenhams-joins-big-squeeze-retailers-force-cuts-payment-delays-suppliers.html

 

Laura Ashley demands 10% rebate from its suppliers

Large companies are deliberately delaying paying invoices to their smaller suppliers, and adding to the misery, they are seeking discounts.

http://www.bbc.co.uk/news/business-21916657

 

Delayed collection of debtors by SMEs

23 Sep 2012

If a SME gets quotes from two factoring companies who charge the same discount rate on the advance but one (Factor A) charges a lower commission, the SME will naturally choose Factor A.

 

This can however be a false economy for the SME if Factor A subsequently takes longer than the other Factor to collect invoices. The longer the time, the greater the discount charge applied by the Factor A, and this can exceed the commission saved. 

 

With Single Invoice Finance there are no hidden charges and no surprises.  If the invoice purchased says payment in 30 days (for example) the SME will be charged only for 30 days. If the debtor is late however, then the SME, or the guarantor, will be liable for a late payment charge.  Click here to find out more about ACF's Single Invoice Finance product.

 

Many types of fees payable on conventional factoring facilities

23 Sep 2012

Factoring companies can apply many different types of fees for a conventional factoring facility.  Invoicefactoringforum.com lists a selection. I've added some others but even then the list is not exhaustive, but enough to deter many SMEs:

 

1 Service charge: applied annually to the SME's gross turnover (including VAT);

 

2 Retro Fee: a fee based on the SME's gross debtor book at the start of the facility (it is in effect the Service charge applied to the outstanding debtor book);

 

3 Discounting Fee: the interest rate charged on the funds advanced initially; 

 

4 Arrangement fee: paid for setting up the facility;

 

5 Survey fee: for undertaking due diligence on the SME's debtor book;

 

6 Audit fee;

 

7 Disbursement fees: these can include a wide variety of transfers;

 

8 Termination fee: if the SME terminates the facility early;

 

9 Legal fees: for preparing documentation;

 

10 Re-factoring fee: applied if the debtor has not paid on the due date.

 

ACF’s Single Invoice Finance product by contrast is far simpler and transparent.  Just one competitive fee around 2.5% to 5.5% of the invoice.  This is usually paid at the end of the transaction, i.e., when the invoice is paid by the debtor. 

 

If the debtor defaults and the SME has not taken out credit insurance, then the SME, or guarantor, will need to pay ACF the overdue amount and probably an overdue charge for each day the debt remains unpaid.

 

SMEs unaware of alternative finance

23 Sep 2012

A press release by credit reference agency, Experian of a poll of 290 SMEs during the period April to June 2012 revealed that awareness of different types of business finance is very low among SMEs, with most continuing to rely on traditional bank overdrafts or personal sources of cash. 

 

When questioned about the first thing they do when thinking about additional financing, 42 per cent of respondents said that they would approach their personal bank. This was followed by 18 per cent who said they would speak to their accountant. Few of the respondents stated that they would shop around: just 10% said they would try all the major banks first, 7% said they would search the internet for the best deals and just 6% said they would speak to a broker. 

 

The findings also reveal that 60 per cent of respondents had sought some form of extra funding in the last 12 months and the need to alleviate short-term cash flow problems was by far the biggest reason for applying for extra cash (58 %). This outstripped activities for growth, such as expanding their product portfolio (20 %) or hiring more staff (12 %).  When asked to name the primary source of additional funding currently used, the top answer (20 % of SMEs questioned), was delaying payments to their suppliers, further highlighting the desire to ease their cash.   flow. This was equal with the 20 per cent who said they rely on cash from family or friends.

 

Max Firth, UK Managing Director for Experian’s Business Information Services division, said: “...a commercial loan is unlikely to be appropriate for their [SMEs’] specific needs, especially if the need is short term, such as alleviating cash flow issues.  For many SMEs, it may make more sense to consider invoice finance options to alleviate the stress of collecting payments, especially where large new deals are won and they are already dealing with increased outgoings to ensure delivery of an order. Furthermore by delaying their own payment to other firms, they are storing up further difficulties for themselves in the future.  A poor payment history could eventually affect their credit rating, their attractiveness to customers and their ability to negotiate good deals with suppliers.”  http://press.experian.com/United-Kingdom/Press-Release/many-smes-unaware-of-alternative-financing-options.aspx                                               Back to top

 

 

 

 

Single invoice finance deal completed: £454.50 Advance

Single invoice finance deal completed: £5250 Advance

Single invoice finance deal completed: £612 Advance

Suppliers face delays on invoice payments

Delayed collection of debtors by SMEs

Many types of fees payable on conventional factoring facilities

 

SMEs unaware of alternative finance