Welcome to Positive Invoice Finance
Positive Invoice Finance is a Commercial Finance Broker that specialises in sourcing Factoring and Invoice Discounting facilities for its clients. Positive Invoice Finance will go to market and present your proposal to a wide range of independent, high street and boutique Factoring and Invoice Discounting providers - we will get the Free Quote that is right for you and your company.
Many businesses find themselves struggling for cash at some point in their life cycle. This can coincide with the existing business bankers being “unable to help” or requesting personal guarantees. Traditional business banking methods do not always encourage growth or offer flexibility. As your business grows, more cash is tied up in unpaid invoices. Invoice finance is the answer.
As a broker, we have relationships with a host of independent and major receivables funders throughout the country, who can react quickly in providing you with the funding your business needs.
Factoring and Invoice Discounting can get the cash flowing promptly by providing an immediate advance on the existing ledger, then cash advances on invoices as and when they are raised. Any business that extends credit can benefit. The debtor book forms the basis of any service agreement, so a factor is more interested in your customers than you. Suitable for a range of industries including manufacturing, distribution, transport, retail and recruitment.
We help you find the right deal from the right factor for your business. In such a competitive market, products and terms change quickly. We keep abreast of these changes daily, enabling us to introduce you to the most competitive of offers for your business, in your industry. We are not sales reps and therefore offer impartial advice & present your case in the most attractive manner to suit the most appropriate factors lending template.
You may have a poor credit history, are a start-up business, or are looking to refinance your existing facility provider. MBI’s, MBO’s, phoenix’s and pre-packs can also be funded.
Whilst the minimum turnover requirement is £50k, we specialise in assisting larger companies with turnovers of up to £75m.
If you need an immediate, cost effective, flexible funding solution, read on...
Invoice Discounting
Invoice Discounting is one of the best solutions to a companies cash flow problems.
Invoice Discounting gives you an immediate cash injection against the value of outstanding invoices, then an advance of up to 90% of the value of an invoice as it is raised (this can go up to 100% in certain circumstances). The balance, less fees payable to the service provider, becomes available when the customer pays the invoice. Unpaid invoices become assets which are turned into cash.
With Invoice Discounting more funds are available to you immediately as your business grows.
Funding levels grow with turnover - which is ideal for a growing business.
Confidential or Non Confidential Invoice Discounting
Invoice Discounting is available as either Confidential Invoice Discounting or Non Confidential Invoice Discounting.
Confidential is where your customers and suppliers do not know you have an invoice discounting facility - your funders name will not appear anywhere on your invoices or paperwork.
Non Confidential Invoice Discounting is where your funders name does appear on your invoices and it is stated that the invoices are assigned to the funder.
Both are available and Non Confidential can be slightly cheaper in some circumstances.
Recourse or Non Recourse Invoice Discounting
Invoice Discounting facilities can be provided as either Recourse or Non Recourse.
Recourse is where the debt is not insured and if your customer does not pay, you or your company will be liable for the debt.
Non Recourse Invoice Discounting is Invoice Discounting that includes Bad Debt Protection. With a Bad Debt Protection policy attached to your invoice discounting facility you have extra comfort in these difficult trading times. If one of your customer goes bust or does not pay you will not have to pay back the funds you borrowed from the funder against this customers invoices as the debt is insured.
Invoice Factoring
Factoring gives you an immediate cash injection against the value of outstanding invoices, then an advance of up to 90% of the value of an invoice as it is raised (This can be up to 100% in certain circumstances). The balance, less fees payable to the service provider, becomes available when the customer pays the invoice. Unpaid invoices become assets which are turned into cash. With Factoring more funds are available to you immediately as your business grows. Funding levels grow with turnover - ideal for a growing business.
Factoring is well suited to small and medium sized businesses with a turnover above £50k who are selling goods and services on credit to other businesses. Factoring is also available for new start businesses.
Credit control & sales ledger management is undertaken by the service provider, which generally costs less than doing it in-house and generally leads to improved collection performance, reduced risk of bad debts and reduced debtor days giving more predictability & ultimately stability. Remember that the factor is as interested in keeping your customers happy as you are, so they are very professional, diplomatic and effective. Detailed accounts of transactions are available to you from the factoring company. If required you can maintain some element of control via close interaction with the credit control team.
The cost of a facility includes a service charge plus the cost of money borrowed (i.e. interest). Recourse (excludes bad debt protection) & non-recourse (includes bad debt protection) facilities can be arranged, with no minimum contract term.
Positive Invoice Finance can help find the best Invoice Finance facility for your company (either Factoring or Invoice Discounting).
We will go to market and find the best deal fo you and your company, giving you the time to do what you do best - run your company!
Trade Finance
Positive Invoice Finance can help provide a Trade Finance Facility for you and your company.
A Trade Finance facility arranged by Positive Invoice Finance provides the funds for you to pay your suppliers so that goods are released and you can fulfil that big order.
Trade Finance is available in conjunction with a factoring or invoice discounting facility and is an excellent method of improving your company’s cash flow.
A Trade Finance facility organised by Positive Invoice Finance ensures all confirmed orders can be fulfilled.
Stocks and supplies for orders received from credit worthy customers can be 100% funded by the factoring company or invoice discounting company. The factoring company or invoice discounting company pays the supplier, so you are able to fulfil your customers order and an invoice is raised, against which funds are raised to re-pay the factoring company or invoice discounting company, with the balance (less fees) returned to you.
Trade Finance is ideal when importing goods into the UK – call Positive Invoice Finance today to see how a trade finance facility can help you.
Trade Finance is also known as Import Finance and it will help you to close the funding gap between an order from a UK customer placed on credit terms, and the payment demanded by your supplier – the supplier could be based in the UK or overseas.
Trade Finance or Import Finance eases the pressure on cashflow and takes care of some potentially complex paperwork and procedures. With Trade Finance or Import Finance, a funder can fund up to 100% of your overseas purchases, including freight, duty and VAT, all the way to the point that your customer pays your invoice – thus helping you to satisfy your customers demand.
Some funders can ,as part of the service, raise and manage the Letter of Credit (LC) with your supplier, reducing the risks associated with importing, and reducing complicated paperwork – Positive Invoice Finance can help provide these facilities for your company. Trade Finance or Import Finance will takes all the uncertainty, worry and financial unpredictability out of the import equation – and can give you cashflow a huge injection, right from day one.
Structured Finance
All funding needs can be consolidated under one roof via a range of facilities structured and secured against all company assets. Structured finance can be used in scenario’s such as restructuring, MBI’s, MBO’s, mergers, acquisitions, or organic growth.
By taking the time to truly understand your business, we can make the most of business assets to raise the funds you need.
Stock Finance
Do you need to hold a level of stock for your business to cover future orders or sales? Does this give rise to cash flow problems?
Stock Finance is a form of Asset Based Lending that is secured against your company’s stock. The Stock can be in the form of Raw Materials and Finished Goods. Positive Invoice Finance can help provide a Stock Finance Facility in conjunction with a Invoice Discounting or Factoring Facility to form a Comprehensive Asset Based Lending Facility.
Positive Invoice Finance can help arrange, in conjunction with a factoring or invoice discounting facility, a stock finance facility for you and your company.
Various Factoring and Invoice Discounting Providers have introduced Stock Finance as they are committed to ensuring you their clients ahead by maximising their working capital assets.
Asset Finance
Asset finance is available in conjunction with a factoring or invoice discounting facility.
Paying cash outright for any capital asset can be a significant drain on resources. Asset finance can involve a comparatively small initial outlay followed by fixed monthly payments which helps to smooth out the financial peaks and troughs. In essence you can fund the asset from the revenue it brings in as it is put to work. It’s an alternative financing method which leaves you with total control to use funds for growth, refinance, purchasing or other.
A range of options to purchase new equipment or to refinance existing equipments offer a flexible funding solution for small to medium sized companies, including new-starts and even loss-making companies across a spread of industries.
Asset finance can be raised for/ against durable assets which are easily identifiable, with a proven resale potential.
Positive Commercial Finance can help you find the right funder for you that will service all the needs of your business.
Positive Invoice Finance can also help provide the following services that are available in conjunction with a factoring or invoice discounting facility:
Payroll and back office services:
Facilities can be put in place whereby the payroll for your employees (and your clients if you are a recruitment business) can be done by your service provider, so all your back office services are done together at a small extra cost.
Factoring and Invoice Discounting Providers understand running a payroll can create time and resource pressures on any business.
How does it work?
The Factoring and Invoice Discounting Provider offer a full range of payroll solutions from simple payroll calculations to the role of a fully outsourced Human Resources department,
The Factoring and Invoice Discounting Provider will put together a competitive funding and payroll package to suit your business needs. By taking advantage of our combined industry experience and qualified staff, you can concentrate on running your core business.
Payroll services
The Factoring and Invoice Discounting Provider has a payroll solution for your company no matter how large or small the workforce is, or how simple or complex the payroll rules are.
The Factoring and Invoice Discounting provider has a web-based payroll solution designed especially for small payroll users. It provides businesses with the convenience of being able to securely process payroll online.
Managed Payroll Service is a totally outsourced payroll function suitable for organisations that do not have, or do not want, expensive, labour intensive and highly specialised payroll facilities of their own.
The Factoring and Invoice Discounting provider can also provide:
• All statutory and legislative implications managed
• Bespoke management reports
• End of year reports prepared and submitted
• Experienced payroll team always on hand
• Payments to staff and third parties on time every time
Bridging Finance (secured against commercial or residential property):
A bridging loan can be provided secured against property to further enhance your facility and give you the extra cash when needed.
This is a short term solution for when more funding is required
What is Bridging Finance?
A bridging finance facility from the invoice discounting and factoring provider is the perfect short-term funding solution to help you grow your business. Available to new or existing clients with an invoice finance facility, bridging finance can be used to help resolve a temporary cash flow problem or meet tight deadlines. It’s ideal for clients looking to purchase new premises, release equity or even raise funds to inject into their business.
How does it work?
Bridging finance gives businesses access to funds of £75,000 or more and is secured against commercial or residential property. By advancing up to 80% of the property value, funds can be secured against property of most types and facilities are available for up to 12 months.
We aim to provide you with an ‘in principle’ decision inside 24 hours and with a number of payment options available it provides you with the flexibility to plan your business’ future.
Lending criteria:
• Offered in conjunction with invoice finance funding
• Property must be based in the UK
• First, second and third legal charge security
• Most types of property can be used as security
• Loan term of up to 12 months
Mezzanine finance:
Mezzanine Finance is also available from funders that Positive Commercial Finance can introduce you to. They can also provide Cash Flow Loans and Equity Participation.
Credit Insurance:
Both Factoring and Invoice Discounting facilities can have the added benefit of Credit Insurance - this can be of particular interest for exporters of goods. A Bad Debt Protection service, working in conjunction with the funders factoring and invoice discounting services, can cover up to 100% of bad debts, ensuring you can grow your business with complete confidence.
How does Bad Debt Protection work?
The Funder will credit-check existing and prospective customers for you and offer cover on each invoice at a level they feel is appropriate, up to 100% of the invoice value.
Sometimes called ‘Non Recourse Factoring’, Bad Debt Protection is a cost-effective solution, ideal for Factoring or Invoice Discounting clients who want increased peace of mind. ‘Non Recourse Factoring’ is a type of Bad Debt Insurance, which means that we recover any approved debts from your customers and have no recourse to you if they fail to pay. Non Recourse Factoring is not the sort of complicated language we choose to use, and you’ll be pleased to hear that our Bad Debt Protection service is not complicated to set-up, run or claim against.
The obvious benefit of Bad Debt Protection is that you can get on with your business, safe in the knowledge that your customers are being professionally credit checked and that you are fully protected, should they fail to pay. No more worrying about the viability of your customers; no need to holdback your business development with concerns over new customers.
With Bad Debt Protection, you enjoy:
• Up to 100% protection – that’s sometimes 20% more than others will offer
• Award-winning personal credit advice, helping you to build a stable business
• One of the most experienced teams in the industry, with an average of 20 years experience per team member
• Free credit checking on new customers
• Typically higher credit limits on your customers
• Fast claim payments, with minimal paperwork
• Competitively priced service, also available on export activities
• Automatic pay-out on approved invoices post 120 days for factoring clients
Enterprise Finance Guarantee
The Enterprise Finance Guarantee (EFG) replaces and improves upon the successful Small Firms Loan Guarantee scheme. This Government-backed business loan is designed to help established viable companies looking for additional funding or working capital and through funders introduced by Positive Invoice Finance, businesses can raise anything from £25,000 to £1 million.
How does the EFG work?
The Government through the BERR (formerly the DTI) guarantees up to 75% of the business loan and the factoring or invoice discounting provider provides the finance Designed for small and medium enterprises, it’s an excellent scheme that can be used for a wide range of business purposes.
If your business has an annual turnover from £500,000 to £25million, you could be eligible.
The Enterprise Finance Guarantee (EFG) is designed to help businesses without security to raise finance by guaranteeing 75% of the loan. It’s a great way to inject working capital into an existing enterprise, quickly and competitively. By raising the finance against your invoices through Factoring or Invoice Discounting, the factoring and invoice discounting company can improve your cashflow at the same time.
the benefits include of the Enterprise Finance Guarantee include:
• Borrow from £25,000 to £1 million
• 75% of the EFG loan is guaranteed
• your cashflow at the same time
• Few restrictions on loan use
• Minimal paperwork - Funder handles all the details of the scheme to simplify the process for you
• Repayment terms range from 3 months to 5 years
• Fast access to finance - we can provide funds in days rather than weeks
• Retain control - Ulitise your assets to maximise finance as an alternative to equity finance.
Export Finance
Positive Invoice Finance can help provide an Export Finance service which is all about helping you to improve the efficiency of your export business, while reducing the risks. We can lower the cashflow pressure almost from day one, help you to cut-out complicated administration and improve credit checking and credit controls.
Through the international Factoring service Positive Invoice Finance can hel you obtain you can get up to 90% of your invoice value paid as soon as you raise it, easing cashflow worries. The balance (less our fee) is paid on settlement of your customer. With Bad Debt Protection you can get the reassurance you need to confidently grow your exporting business, and we can help you to safely move away from Letters of Credit to standard account terms, simplifying exporting for you and your customers.
Export Finance – how does it work?
You raise an invoice to an overseas customer in the normal way. The Factoring or Invoice Discounting providers Export Finance service then pays you up to 90% of the invoice value. If you choose our international Factoring service, they take responsibility for collecting the money you’re owed – and then they pay you the balance less an agreed fee, once the money is in. If you prefer to use their international Invoice Discounting service, you collect the money and we then pay you the balance once funds are cleared.
As the trend away from Letters of Credit towards standard accounts continues, The factoring and invoice discounting providers Export Finance service can play a vital role in easing pressure on cashflow, whilst helping to minimise the risks associated with late payments and bad debts from foreign customers. Recovering money and chasing potential bad debts can be much tougher in a foreign language, in a country with different ways of doing business and a whole raft of different techniques for stalling payments. Export Factoring can provide the solution.
The benefits include:
• Unlocking the cash tied up in your invoices, giving you the flexibility to grow your export business
• Enjoying up to 90% of your invoice value upfront, with the balance paid on collection, less our agreed fees
• The choice of Factoring or Invoice Discounting to suit your own set-up
International Factoring includes local collection in your customer’s country, removing language and cultural barriers
• The option to include Bad Debt Protection and enjoy expert credit checking, while enjoying 100% cover on Factoring and 95% cover on Invoice Discounting.
• Less cost and less time consuming to set up than Letters of Credit
• More cost-effective and straightforward for your customers, reducing barriers to new business
• All the benefits of Venture’s award-winning service including a personal Relationship Manager and 24/7 online access to your account
• Potential to negotiate better terms with suppliers
• The ability to expand your exporting business with less financial risk
• A professionally run export credit service, without employing specialist staff
• Having a flexible finance facility that grows with your business
Positive Invoice Finance - The Factoring and Invoice Discounting Broker
