“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'.
Paul Williams, PWR Media Limited, London.
In February a media company sold one of its invoices to ACF with a value of just £720 inc VAT. ACF paid the company 85% (£612) within 12 hours of two simple documents being signed, and agreed to pay the balance of 15%, less ACF's fee, when the debtor finally settled the invoice, on 31 July. Without ACF's help, the media company would have collected the invoice payments in monthly installments until 31 July, 175 days later.
ACF's fee for providing 175 day cashflow? Just £45
ACF buys trade invoices for cash. ACF does not provide debt.
If your business needs cash quickly (e.g., to pay a supplier, HMRC, salaries, rent, buy stock, or to bid for a contract), sell just one or more of your trade invoices to ACF. In return, ACF will pay you cash up to 95% of the value of each invoice sold - with the balance (less ACF's fee) paid to you when the invoice is paid by your debtor (e.g., in 30 or 60 days).
ACF offers single invoice finance on a disclosed or non-disclosed basis.
If single invoice finance is on a disclosed basis then your debtor will be notified of the sale of the invoice sent to them. They will need to agree to pay ACF in full and direct and on the due date, and also confirm there is no dispute over any invoice sold. If single invoice finance is not disclosed then your debtor will not be notified.
ACF's fee for single invoice finance depends on each invoice purchased but is likely to be from 0.5% to 7.5% per month of the invoice amount. There are NO other charges such as broker fees, arrangement fees, committment fees, facility maintenance fees, or termination fees that you would pay with conventional invoice discounting facilities. (Additional fees will obviously apply for credit protection and outsourcing of invoice collection if you use these - see below)
You choose when and if you want to sell an invoice, so there is no obligation on you to sell your whole sales ledger, and you will not enter into any ongoing financing agreement with ACF.
An invoice with a value of just £200 may be sold, with a payment term usually of up to 180 days, in any currency. You can choose to be paid either in the currency of the invoice or GBP, and you can choose to either retain or protect against currency risk, at no extra cost to you.
ACF does not assume debtor credit risk so you will need to agree with ACF to buy an invoice back if your debtor defaults. If you prefer, for an additional 1-3% approximately, you might be able to purchase insurance protecting you up to 90% of the invoice value against debtor default. You can outsource invoice collection to a credit management company.
Businesses that are start-ups, have poor credit, or are not-for-profit, are also welcome to apply for funds.
How single invoice finance works
all rights reserved: Applied Corporate Finance (ACF) 2013
Up to 95% of invoice paid upfront
- One competitive fee
- No commitment on you to sell an invoice
- No facility
- Invoice may be in any currency
No currency exposure
- No debt or interest to pay
- Single invoice sold (not the your entire sales ledger)
- Invoice sold from just £200
- You retain your customer relationship
- Bad debt credit protection is available
- Invoice collection can be outsourced
- Can be used by start-up or poor credit businesses
(sole-trader, LLP, and Ltd co)
- Cash may be used for any purpose
Contact ACF Today
and get the cash you need
tel: 07800 862499
Compare the typical costs of single invoice
finance versus conventional factoring
Examples of ACF single invoice finance completed transactions:
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
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