Invoice finance – B Through Z http://bthroughz.com/ Fri, 16 Sep 2022 02:35:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bthroughz.com/wp-content/uploads/2021/08/icon-23-150x150.png Invoice finance – B Through Z http://bthroughz.com/ 32 32 Launch of a new invoice financing product A welcome break from traditional factoring https://bthroughz.com/launch-of-a-new-invoice-financing-product-a-welcome-break-from-traditional-factoring/ Fri, 16 Sep 2022 02:35:00 +0000 https://bthroughz.com/launch-of-a-new-invoice-financing-product-a-welcome-break-from-traditional-factoring/ Friday, September 16, 2022, 2:35 p.m.Press release: Funds flow Small businesses can now request invoice financing via FundFlow, a new product that has many advantages over traditional factoring. Jamar Finance has been providing business-to-business financing for seven years and saw the launch of its new product, FundFlow, as an opportunity to provide another service to […]]]>


Small businesses can now request invoice financing
via FundFlow, a new product that has many advantages over traditional factoring.

Jamar Finance has been providing business-to-business financing for seven years and saw the launch of its new product, FundFlow, as an opportunity to provide another service to its clients.

FundFlow offers on-bill financing for small businesses. Founder Jim Churchman says, “When it comes to cash flow, timing is everything. FundFlow increases your short-term free cash flow through invoice financing – buying your invoices and turning them into cash.”

When asked how his product differs from traditional invoice factoring, Churchman explains that “factoring companies typically take over all of your accounts receivable records and can lock you into long-term contracts, with monthly fee. FundFlow has no long-term contracts or administration fees, and you only pay for the service when you use it. It’s perfect for businesses that need a little extra cash flow help from time to time. With FundFlow, you can name and sell individual invoices to improve your cash flow”.

The process is quite simple. Once your account and credit limit for invoice financing is approved, the company submits the invoices for which it wishes to obtain financing. The company takes a personal approach to each client and tailors a specific solution to each client’s needs.

debtor’s finances

Needs.

© Scoop Media

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Business Development Director – Invoice Finance / Asset Based Lending https://bthroughz.com/business-development-director-invoice-finance-asset-based-lending/ Fri, 22 Jul 2022 10:47:21 +0000 https://bthroughz.com/business-development-director-invoice-finance-asset-based-lending/ {JLinkedShare} Written by Louise Clavey Posted: July 22, 2022 Created: July 22, 2022 Competitive salary, car allowance, good bonus level and benefits package. The Business Development Manager will be responsible for supporting the company’s growth aspirations by focusing on generating new business and achieving own sales and financial goals. The main tasks and responsibilities are: […]]]>

Competitive salary, car allowance, good bonus level and benefits package.

The Business Development Manager will be responsible for supporting the company’s growth aspirations by focusing on generating new business and achieving own sales and financial goals.

The main tasks and responsibilities are:

  • Develop and maintain strong relationships with key business introducers (KBIs) to find new business leads and opportunities that fit the company’s lending criteria/risk appetite.
  • Act as a key contact for existing key business introducer relationship partners in the allocated area.
  • Work closely with KBIs and prospects to qualify all new leads and business opportunities in a timely and professional manner.
  • Build and develop strong relationships with new prospects and develop a good understanding of their respective business models and requirements to progress through opportunities.
  • Build a sales pipeline and “close” sales opportunities to meet or exceed agreed targets.
  • Work closely with senior management to support lead generation activities and the movement of opportunities through the pipeline.
  • Undertake networking activities and attend appropriate industry events to support day-to-day business.
  • Maintain regular contact with KBIs and other business contacts, sharing appropriate business intelligence with company stakeholders.
  • Promote other business products to KBIs and prospects, informing them of new products and services to ensure cross-selling opportunities are maximized.

Person specification:

  • At least 5 years of experience in a sales role in a new business capacity in the invoice financing / asset based lending market.
  • Ability to interpret financial information and structure financing solutions against appropriate asset classes.
  • Track record of achieving sales management goals.
  • Delivery of key strategic pitches, excellent sales skills and ability to execute sales opportunities.
  • Strong interpersonal, written and oral communication skills.
  • Experience and understanding of the small and medium business market.
  • Be motivated, resilient and goal-oriented.

Contact: As a first step, please send your CV to Mark Lyons at mark@marklyonsrecruitment.com or call 0161 258 0053 / 07470 476320 for a confidential discussion.

If this role is not in the right place but you would like to register, please visit www.marklyonsrecruitment.com to submit your details.

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How to get the funds you need https://bthroughz.com/how-to-get-the-funds-you-need/ Tue, 19 Jul 2022 14:32:51 +0000 https://bthroughz.com/how-to-get-the-funds-you-need/ If you’re a business owner who often waits weeks or even months to get paid by your customers, invoice financing may be a good fit for you. This type of financing allows businesses to get the money they need now by using their outstanding invoices as collateral. There are several different types of invoice financing, […]]]>

If you’re a business owner who often waits weeks or even months to get paid by your customers, invoice financing may be a good fit for you.

This type of financing allows businesses to get the money they need now by using their outstanding invoices as collateral. There are several different types of invoice financing, so it’s important to understand what each entails before making a decision.

In this blog post, we’ll explain in detail what invoice financing is, review the three most common types of invoice financing: factoring, discounting, and asset-based lending, and some tips. essential to choose the best invoice. financing provider for your needs!

What is invoice financing and what is it used for?

If you ever wondered what is invoice financingHere’s a simple answer: Invoice financing is a type of short-term borrowing that small business owners can use to get cash quickly. When you invoice your customers, you can borrow against the value of those invoices. The lender will give you a percentage of the total bill amount, usually between 70% and 80%. You then have to repay the loan plus interest and fees over a period of time, usually 30 to 60 days.

Invoice financing has several advantages for small businesses.

First, it gives business owners a way to get cash fast without having to wait for their customers to pay their bills. This can be useful if you need money to cover major expenses or if you are having a cash flow problem. Second, bill financing can help you avoid late customer payments by giving you the money you need to pay your bills on time. Finally, it can help you build your business credit and improve your cash flow by providing you with a stable source of funding.

Three most common types of invoice financing:

Factoring: what is it and how does it work?

Factoring is a type of invoice financing where a business sells its accounts receivable (money owed to it by customers) to a third party. The third party then becomes the owner of the accounts receivable and is responsible for collecting the money from the customers.

The business that sells its accounts receivable receives an immediate injection of cash, which it can use to pay bills, expand operations, or invest in new products or services. In addition, the third party assumes the risk of not being able to recover the money from the customers, which means that the company does not have to worry about bad debts.

The discount: what is it and how does it work?

Discounting is a form of invoice financing that allows businesses to borrow money against the value of their unpaid invoices. This type of financing can be very useful for businesses that have a lot of cash tied up in their accounts receivable, as it gives them immediate access to that cash.

The way it works is quite simple. Once a company has been approved for a discount facility, they will provide the lender with a list of their outstanding invoices. The lender will then advance a percentage of the total value of the invoice, less costs and interest. Once the customer has paid the invoice in full, the lender will pass the proceeds to the business less any applicable fees and interest.

Asset based loans: what are they and how do they work?

Asset-based lending is a type of financing in which a company borrows money by pledging its assets as collateral. The most common type of asset used as collateral is accounts receivable, but assets such as inventory, equipment, and real estate can also be used.

The advantage of asset-based lending is that it is much easier to get approved than traditional lending. This is because the lender does not rely on the borrower’s credit history or future earning potential, but rather on the value of the pledged assets. And because the interest rate is based on using those assets as collateral, it’s often cheaper than traditional loans.

Any tips for choosing the best invoice financing provider for your needs?

When it comes to choosing an invoice financing provider, there are a few things you need to keep in mind. Above all, you need to make sure that the provider is reputable and has a good track record. There are many new vendors out there who may not have the experience or expertise to provide good service.

Second, you need to ensure that the fees charged by the provider are reasonable. Bill financing can be expensive, so you need to make sure you’re not paying too much for the service. Compare fees from different providers and make sure you’re getting a good deal.

Finally, you need to make sure that the supplier offers good customer service. This is important because if there are any issues with your account, you need to be able to get in touch with someone who can help you.

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Muse Finance launches a combined supply and invoice financing solution https://bthroughz.com/muse-finance-launches-a-combined-supply-and-invoice-financing-solution/ Fri, 24 Jun 2022 05:30:05 +0000 https://bthroughz.com/muse-finance-launches-a-combined-supply-and-invoice-financing-solution/ Muse Finance launches a combined supply and invoice financing solution By Joy Dumasia Today Bill payments Europe FinTech Muse Financethe business finance start-up, announces that it has launched a new solution combining supply financing and invoice financing to help businesses pay overseas suppliers while unlocking cash tied up in their pending invoices. Muse developed the […]]]>

Muse Finance launches a combined supply and invoice financing solution

By Joy Dumasia

Today

  • Bill payments
  • Europe
  • FinTech

Muse Financethe business finance start-up, announces that it has launched a new solution combining supply financing and invoice financing to help businesses pay overseas suppliers while unlocking cash tied up in their pending invoices.

Muse developed the new business finance product after recognizing growing demand for working capital expansion in the UK. By easing the financial burden on small businesses when paying their suppliers and increasing flexibility when reimbursing, customers can better manage their cash flow and nurture supplier relationships.

With Supply Finance, Muse pays suppliers on behalf of its customers for goods they bring into the UK from overseas for their business. By doing so, Muse customers enjoy greater cash flow flexibility while they wait for the goods to arrive in the UK, repaying the loan over a period of 120 days. By integrating Invoice Finance, Muse also facilitates subsequent Supply Finance reimbursement by allowing customers to claim 90% of the value of their invoices within 24 hours.

This level of flexibility is increasingly important given new regulations surrounding Brexit and the fallout from the coronavirus pandemic, both of which have led to delays in shipping goods to the UK and increased demand for working capital.

By combining Supply and Invoice Finance, customers can also eliminate the need to incur additional debt via trade overdraft or corporate credit to meet repayments. Managed through the Muse portal, clients can easily monitor their cash flow and see when funds are available for their business, helping them better plan future work. From a finance application to supplier payment and invoice management, Muse also manages the entire finance process on behalf of its commercial customers, reducing the need for follow-up payment.

Ann Marie Juliano, Founder and CEO of Muse Finance, said, “Our new combined supply and invoice financing solution will help our customers looking for quick access to funds to continue to grow their business while alleviating the cash flow pressures they often face. . By facilitating rapid access to funds for companies and their suppliers, we hope to help improve their relationships with their partners and streamline their business operations.

David Hill, Director of Ringside Boxing Ltdsaid: “With increasingly long supply chains as a result of Brexit and the pandemic, maintaining the financial stability of our business, but also ensuring that our suppliers are paid on time is importance. Muse Finance’s Supply & Invoice Finance service helped us do just that, allowing us to place an order that helped grow our business, but with accessible reimbursement terms. We are grateful for the increased flexibility Muse has given our business, as well as for the high level of service the team has provided when using the product.

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Muse Finance combines procurement and invoice financing https://bthroughz.com/muse-finance-combines-procurement-and-invoice-financing/ Wed, 22 Jun 2022 10:55:31 +0000 https://bthroughz.com/muse-finance-combines-procurement-and-invoice-financing/ Muse Finance – the corporate finance start-up – today announces the launch of a new solution that combines supply finance and invoice finance, to help companies pay overseas suppliers while unlocking cash tied up in their pending bills. The new business finance product was developed by Muse after recognizing growing demand for working capital expansion […]]]>

Muse Finance – the corporate finance start-up – today announces the launch of a new solution that combines supply finance and invoice finance, to help companies pay overseas suppliers while unlocking cash tied up in their pending bills.

The new business finance product was developed by Muse after recognizing growing demand for working capital expansion in the UK. By easing the financial burden on small businesses when paying their suppliers, as well as providing increased flexibility when reimbursing, customers can better manage their cash flow and nurture supplier relationships.

With Supply Finance, Muse pays suppliers on behalf of its customers for goods they bring into the UK from overseas for their business. In doing so, Muse customers benefit from increased cash flow flexibility while they await the arrival of goods in the UK – repaying the loan over a period of 120 days. By integrating Invoice Finance, Muse also facilitates subsequent Supply Finance reimbursement by allowing customers to claim 90% of the value of their invoices within 24 hours.

This level of flexibility is increasingly important given new regulations surrounding Brexit and the fallout from the coronavirus pandemic, both of which have led to delays in shipping goods to the UK and increased demand for working capital.

By combining Supply and Invoice Finance, customers can also eliminate the need to take on additional debt – via trade overdraft or corporate credit – to meet repayments. Managed through the Muse portal, clients can easily monitor their cash flow and see when funds are available for their business, helping them better plan future work. From requesting financing to paying suppliers and managing invoices, Muse also manages the entire financing process on behalf of its business clients, eliminating the hassle of chasing payment.

Ringside Boxing Ltd, a supplier of premium boxing equipment, is one of Muse’s first customers to use the solution.
Ann Marie Juliano, Founder and CEO of Muse Finance, said:
“Our new combined supply and invoice financing solution will help our customers looking for quick access to funds to continue to grow their business while alleviating the cash flow pressures they often face. By facilitating rapid access to funds for companies and their suppliers, we hope to help improve their relationships with their partners and streamline their business operations.

David Hill, Director of Ringside Boxing Ltd said:
“With increasingly long supply chains as a result of Brexit and the pandemic, maintaining the financial stability of our business, but also ensuring that our suppliers are paid on time is of paramount importance. Muse Finance’s Supply & Invoice Finance service has helped us do just that, allowing us to place an order that has helped our business grow, but with accessible reimbursement terms.We are grateful for the increased flexibility that Muse has given to our company, as well as for the high level of service the team has provided while using the product.

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Decision on Close Bros Invoice Finance Limited https://bthroughz.com/decision-on-close-bros-invoice-finance-limited/ Wed, 18 May 2022 10:50:21 +0000 https://bthroughz.com/decision-on-close-bros-invoice-finance-limited/ Order under the Companies Act 2006 Regarding application no. 3755 By Close Invoice Finance Limited For a change of registration name No. 13328837 Background 1. The name CLOSE BROS INVOICE FINANCE LIMITED is registered since April 12, 2021 under number 13328837 (“the main defendant”). The Companies House website lists two directors, namely David Lawrence Fabb […]]]>

Order under the Companies Act 2006

Regarding application no. 3755

By Close Invoice Finance Limited

For a change of registration name

No. 13328837

Background

1. The name CLOSE BROS INVOICE FINANCE LIMITED is registered since April 12, 2021 under number 13328837 (“the main defendant”). The Companies House website lists two directors, namely David Lawrence Fabb and Greg Taft.

2. By an application filed on December 17, 2021, Close Invoice Finance Limited (“the applicant”) requested a change of name of this registration pursuant to the provisions of s. 69(1) of the Companies Act 2006 (“the Act”). The plaintiff is represented by Addleshaw Goddard LLP.

3. A copy of the Application was sent to the registered office of the Lead Respondent on 4 February 2022, pursuant to Rule 3(2) of the Company Names Arbitration Rules 2008 (“the Rules”). The lead respondent has been granted until March 4, 2022 to file a defense on Form CNA2 together with the official fee of £150. I note that the letter contained the following (emphasis in original):

If you choose not to file a CNA Form 2 and the £150 fee, the arbitrator may treat the claim as unopposed and may make an order under section 73(1) of the Companies Act of 2006.

If you decide not to defend the name of your company, the request will normally be accepted. A decision in favor of the plaintiff will normally include an award of costs in favor of the plaintiff, provided that costs have been requested by the plaintiff.

4. On the same day the court wrote to MM. Fabb and Taft to inform them that the plaintiff had requested to be joined in the proceedings as co-defendants. They had until March 4, 2022 to comment on this request.

5. Neither the lead respondent nor the co-respondents responded to the letters from the court. Accordingly, on March 18, 2022, the court wrote to the main defendant informing him that,

Since no CNA 2 was filed within the time limit, pursuant to Rule 3(4), the Adjudicator may treat the claim as unopposed and may make an order under Rule 73(1). ) of the Companies Act 2006.

6. The Lead Respondent was also advised that either party had a right to be heard under Rule 5(3) and that a hearing could be requested by filing a CNA4 Form (” Request to appoint a hearing”). , with accompanying fee of £100, by 1 April 2022 at the latest.

7. The court also wrote to MM. Fabb and Taft on March 18, 2022, confirming that they had been joined as co-defendants and that this decision could also be appealed by filing a CNA4 form and costs before April 1, 2022.

8. On March 30, 2022, the main defendant filed a Form CNA4. It was completed by Mr. Fabb. The failure to submit the CNA2 form was not explained, either on the CNA4 form or in the letter accompanying the CNA4 sent to the applicant’s representatives.

9. On April 25, 2022, the Court wrote to the parties expressing its view that the Lead Defendant had exercised his right to a hearing and appointed a Case Management Conference (“CMC”) for Friday May 6, 2022 to to discuss the principal defendant’s failure to file a CNA2 form. The letter included the following (original italics):

[…] The purpose of the CMC is to determine whether the procedure should continue; it is not a decision on the merits of the claimant’s claim. The arbitrator has discretion to extend any time limit under Rule 7, including that for filing a counter statement, but there is no discretion to waive the requirement for a counter statement (which must be filed on a CNA2 form). The arbitrator will therefore require the respondent to file a Form CNA2 and counter statement, along with a witness statement explaining why the deadline was not met, no later than 2 p.m. on May 4, 2022. These documents must be copied to the applicant. The respondent must also be prepared to explain to the CMC why the arbitrator should now exercise his discretion in favor of the respondent.

10. A CNA2 form was filed on May 4, 2022 but without a witness statement.

11. The CMC met before me as scheduled, via conference call. The principal respondent was represented by Mr. Fabb. The plaintiff was represented by Rayan Fakhoury, a lawyer appointed by Addleshaw Goddard.

Decision

12. The relevant rules are as follows:

3(3) The arbitrator shall set a time limit within which the main respondent must file his defence. (4) The main defendant, before the end of this period, must file a counter statement in the appropriate form, failing which the arbitrator may treat it as not opposing the claim and may make an order under of section 73(1).

[…]

7(1) The Adjudicator may extend (or further extend) any period which has been specified under any provision of these Rules even if the period has expired.

(2) Any party may request an extension of any time limit specified under any provision of these Rules.

(3) Any request for a retroactive extension must be filed before the expiry of the period of 2 months from the date of expiry of the period in question.

(4) Any request made under subsection (2) must be made on the appropriate form and must include the reasons why the additional time is required. A request for retroactive extension must also include the reasons why the request is made out of time.

13. I have decided after hearing the parties that I will not exercise my discretion to extend the time limit for filing Form CNA2 and that the application will be proceeded with without opposition. My decision meant that some of the issues discussed or to be discussed at the CMC became moot, including the plaintiff’s request for security for costs. In addition, Mr. Fakhoury had filed in advance a summary argument and, for the most part, relied on the conclusions contained therein. Accordingly, I do not intend to repeat all of the arguments presented to the CMC, but will focus on those that are relevant to my decision. I must add that, although Mr. Fabb complained that he had only received the skeleton of the argument the day before (at the same time as the court), he confirmed that he had read it. I briefly gave the reasons for my decision to the CMC and said that I would give my full reasons in writing. What I do now.

14. Mr. Fabb did not dispute that the principal defendant had received the CNA1 form and the covering letter from the court. However, he said there were extenuating circumstances for the failure to file the CNA2 form. First of all, he had been very busy preparing a brief for legal proceedings for a period of three months. He was unaware of the delay in filing the CNA2 form which, he agreed, was due to him not reading the letter properly. Secondly, Mr. Fabb indicated that he had no funds because he had spent considerable sums on other procedures.

15. I recognize that mistakes are sometimes made, but it is an inadequate response to assert that official correspondence relating to company assets was simply not read carefully. It seems that there was no system for checking or recording official correspondence and that the deadline was not respected due to lack of a minimum of vigilance in reading official correspondence. In this, the main respondent is the author of his own misfortune.

16. With regard to Mr. Fabb’s financial embarrassment, while an inability to raise funds may be relevant in certain circumstances, I doubt this applies where the choice has been made to spend the monies on d other procedures, particularly in the absence of clear evidence that there were, for example, short maturities which led to a temporary cash flow difficulty. However, this misses the most important point in this case, which is that even if sufficient funds had been available, it would not have helped, as the lead respondent was unaware of the deadline, through no one’s fault but his own. Even if these reasons had been provided in the form of a witness statement, in accordance with the express direction of the court, I did not consider them to constitute a good reason to exercise my discretion under Rule 3 (4) or 7(1) .

17. Therefore, in accordance with art. 73(1) of the Act, I make the following order:

  • CLOSE BROS INVOICE FINANCE LIMITED will change its name within one month from the date of this order to a name that is not offensive;
  • CLOSE BROS INVOICE FINANCE LIMITED, Mr. David Lawrence Fabb and Mr. Greg Taft must each:
  • take such steps as are within their power to effect or facilitate the effecting of such change;
  • not cause or allow any action to be taken to cause another company to register under a name which is an offensive name.

18. In accordance with art. 73(3) of the Act, this order can be enforced in the same way as an order of the High Court or, in Scotland, the Court of Session.

19. In any case, if no change is made within one month of the date of this order, I will determine a new company name in accordance with art. 73(4) of the Act and will give notice of this change under s. 73(5) of the Act.

20. All respondents, including individual co-respondents, have a legal obligation under s. 73(1)(b)(ii) of the Act not to cause or permit any action to be taken which would result in the registration of another company under an offensive name; this includes today’s society. Failure to comply may result in legal action for contempt of court and may result in a custodial sentence.

Costs

21. The Claimant contacted the First Respondent on November 12, 2021 to advise that unless the First Respondent changed its corporate name, proceedings would be commenced in this court. I therefore see no reason to deny the applicant, as the winning party, an award of costs. The candidate requests a bonus on the scale. She is asking for £400 to prepare the claim and £600 to attend the hearing. I understand that the solicitor’s instructions have increased the claimant’s expenses, but the maximum scale for a hearing (£1,500) is for a full day’s hearing on the merits; it was a CMC of about 40 minutes. I award costs to the plaintiff as follows:

Application preparation: £400
Filing fee: £400
Audience: £400

Total: £1,200

22. I order CLOSE BROS INVOICE FINANCE LIMITED, Mr David Lawrence Fabb and Mr Greg Taft (jointly) to pay Close Invoice Finance Limited the sum of £1,200 within 21 days of the expiry of the appeal, or within 21 days of the final decision of this case if any appeal against this decision is unsuccessful. According to art. 74(1) of the Act, an appeal can only be taken from the decision to grant the application; there is no right of appeal with respect to fees.

23. Any notice of appeal against this decision must be given within one month of the date of this decision. The appeal is to the High Court in England, Wales and Northern Ireland and to the Court of Session in Scotland.

24. The Company Names Adjudicator must be notified of any appeal, so that enforcement of the order can be stayed.

As of May 13, 2022

Heather Harrison
Arbitrator of Company Names

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Firstsource: How Automation Helps Invoice Finance Lenders Detect and Stop Fraud Faster https://bthroughz.com/firstsource-how-automation-helps-invoice-finance-lenders-detect-and-stop-fraud-faster/ Mon, 25 Apr 2022 10:10:10 +0000 https://bthroughz.com/firstsource-how-automation-helps-invoice-finance-lenders-detect-and-stop-fraud-faster/ At the start of a new year, we often see an increase in invoice finance fraud – when customers seek to borrow money by providing lenders with inaccurate information. (Not to be confused with invoice fraud which sees fraudsters send out fake, real-looking invoices to extract payment from businesses.) The mechanisms of fraud differ for […]]]>

At the start of a new year, we often see an increase in invoice finance fraud – when customers seek to borrow money by providing lenders with inaccurate information. (Not to be confused with invoice fraud which sees fraudsters send out fake, real-looking invoices to extract payment from businesses.)

The mechanisms of fraud differ for invoice factoring and invoice discounting. But at the heart of it are false, duplicated, or re-arranged invoices, fake credit memos, misappropriated receipts, and general ledger reconciliation challenges.

Invoice financing fraud becomes harder to spot during peak sales periods. Because the rise in trade legitimizes an increase in borrowing. And as lenders’ resources are strained due to high volumes of loan applications, fraud can creep in.

To spot and stop invoice finance fraud quickly, lenders must have the right tools. This can be done by using intelligent automation across the entire process, from lending to account management and checks.

Improve review processes

For invoice factoring, a manual review process means that a level of human error is unavoidable. The result is that red flags are missed while heavy due diligence processes take longer.
Automating exception handling can improve the review process. This allows automations (or bots) to perform background checks on an invoice to detect irregularities in the invoice number, size, or assigned credit scores. If anything unusual is detected, the relevant teams are notified and asked to investigate further. Here, human action only occurs when needed, saving employees time while reducing the margin for error.

Improve visibility

Another challenge for invoice factoring companies comes from misappropriated receipts – when payments collected by the customer are not transferred to the lender. This may be missing until the customer’s debt extends the agreed terms or an old and unpaid invoice is reported.
Automation can be used to quickly recognize this fraud. Bots can monitor the customer’s banking history for anomalies. For example, a bot can identify when payments from named debtors are not returned to the lender on time.

Increased verification

Verification of invoices, new borrowers and their creditors is crucial for invoice factoring and discounting. A simple step such as verifying receipt of goods or services can become a bottleneck when manually searching for proof of delivery.
Automation makes verification quick and easy. Here, bots can automatically send emails to request documents, search for customers, and process shared data by extracting relevant information. They can flag deviations and unusual activity for the team to review. So people don’t need to do low-value activities like chasing and can focus on tasks that require detailed examinations.
Bots can also verify new borrowers more quickly and accurately. The appointment of the same administrators to the boards of borrowers and creditors is a telltale sign of fraud. Bots can analyze online data sources to spot any correlation between borrower and creditor administrators. It’s a smart way to stop rogue apps in their tracks.

Speeding up the general ledger reconciliation process

Effective general ledger reconciliation is essential for lenders who discount invoices – unfortunately, it is often slow and error-prone. First, it takes two weeks for clients to submit their books, then another ten days for lenders to manually reconcile them to their records. This means that any mismatches and potential fraud are detected almost a month later.
Automation can help reconciliation in two ways.
First, a workflow can be configured to automatically pull the customer ledger at the beginning of each month. Second, bots can examine entries in customer and lender ledgers for discrepancies and animalities. These are then given to people to investigate further. This ensures that fraud is spotted earlier in the month and action taken immediately.

Harness cutting-edge technology

Automation is a great springboard for doing more with data – it improves data quality. This data can then be used to gain deeper insights by deploying analytics or machine learning.
For example, analysis may reveal more patterns that signal suspicious activity. While machine learning can examine external and contextual data sources to determine tricky fraudulent transactions that go undetected due to their more elusive nature.

Non-intrusive solution

The best thing about automation is that it relies on the lenders existing IT infrastructure with minimal disruption to existing systems. There is no need to extract and replace applications or learn to use a new process. The bots are calibrated to work with lenders’ systems and processes, requiring minimal IT intervention.

Automation is not only a more efficient but also a non-intrusive way to spot and stop fraudulent activity. With this solution in place, lenders can keep fraud at bay even during the busiest times without straining resources by increasing expenses.

This article is written by Venugopala Dumpala, Head of Banking and Financial Services Practice at Firstsource in Review of Global Banking and Financial Activities.

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SME financier and first partner accountancy firm for the financing of invoices https://bthroughz.com/sme-financier-and-first-partner-accountancy-firm-for-the-financing-of-invoices/ Mon, 25 Apr 2022 06:02:59 +0000 https://bthroughz.com/sme-financier-and-first-partner-accountancy-firm-for-the-financing-of-invoices/ International SME finance provider, Bibby Financial Services (BFS), and regional SME accounting and advisory firm, Azets, have agreed a strategic partnership to provide invoice financing facilities across the turnover. The deal, unveiled today – 25 April, sees BFS become Azets’ preferred partner for financing facilities of up to £250,000, giving its network of 3,500 accountancy […]]]>

International SME finance provider, Bibby Financial Services (BFS), and regional SME accounting and advisory firm, Azets, have agreed a strategic partnership to provide invoice financing facilities across the turnover.

The deal, unveiled today – 25 April, sees BFS become Azets’ preferred partner for financing facilities of up to £250,000, giving its network of 3,500 accountancy and advisory specialists access working capital and cash flow solutions to support their clients.

Derek Ryan, UK Managing Director of BFS, said: “We want to strengthen and complement the relationships we have within the intermediary and business advisory community.

“Azets’ commitment to providing excellent service, coupled with its network of chartered accountants and business advisors, makes it a natural and strategic fit for us, and we look forward to strengthening support for UK SMEs together.”

BFS is the UK’s largest independent invoice finance provider, supporting over 6,000 SME customers across over 300 industry sectors.

Neil Grogan, Head of Strategic Partnerships at Azets, said: “SMEs are the engine of the economy, and we are committed to supporting them by providing the expert advice offered through our network.

“As the largest independent provider of invoice financing, BFS has both the expertise and the scale to enable our accounting and advisory specialists to better support their clients in 2022 and beyond.”

Azets is part of the Azets Group, Europe’s largest regional accountancy firm and specialist business advisor for SMEs, employing over 6,500 people and supporting some 120,000 clients.

Ryan added: “As a family business celebrating 40 yearsand anniversary in 2022, it is extremely important for us to partner with organizations that share our values.

“Azets absolutely does, and our new partnership will no doubt help UK SMEs – wherever they are in their business life cycle through the provision of targeted future financing solutions.”

Join us at the 2021 Rainmaker Awards in Manchester on September 9

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A comparison: Payday Loans and Invoice Financing https://bthroughz.com/a-comparison-payday-loans-and-invoice-financing/ Tue, 12 Apr 2022 12:28:23 +0000 https://bthroughz.com/?p=641 “Get cash!” We all know the advertising and phrases used by payday lenders to entice desperate people. For some, payday loans may be a loan consolidation company realistic alternative, but for most, the temporary comfort they bring comes at a great cost. Here are the facts concerning small business payday loans (also known as cash […]]]>

“Get cash!” We all know the advertising and phrases used by payday lenders to entice desperate people. For some, payday loans may be a loan consolidation company realistic alternative, but for most, the temporary comfort they bring comes at a great cost.

Here are the facts concerning small business payday loans (also known as cash advance loans) and some alternatives to explore.

A Payday Loan

Payday loans began as a fast fix for monetary troubles. Payday loans are simply cash advances secured by a personal check or paid electronically (hence the name). The funds are made accessible for a limited time (often two weeks) at a fixed cost depending on the amount borrowed.

Businesses promote payday loans or cash advance loans as a solution to cover financial shortages caused by unexpected expenses or inadequate incoming income.

Payday Loans

Payday loans function as follows, according to the FTC:

“The borrower makes a personal check payable to the lender for the amount requested plus the borrowing charge. The firm agrees to keep the check until the loan is due, generally the following paycheck. Or, with the borrower’s approval, the corporation electronically deposits the borrowed funds (minus the cost). The loan is due the next payday.”

Payday Loans Have a Cap

To safeguard borrowers, most states have rules limiting the amount and length of payday loans. Others have outright prohibited them. Limits vary from $300 to $500.

Cash Advances Are Expensive

Payday loans may be highly expensive, particularly if you can’t pay them back on time. Payday loan yearly percentage rates range from 400% to 5,000%!

Payday loans may, in the long term, exacerbate financial problems. Every year, according to sources, more than half of payday borrowers take out seven or more loans. The majority are confiscated within 14 days after repayment, with some being seized the same day.

The FTC warns against payday loans and advises customers to investigate alternatives. The Commission offers instances of rising charges and how a $100 loan may cost $60 after three rollovers.

Payday Loans Cause Long Term Debt

This indicates that one-quarter of all borrowers owe payday lenders 88 percent of the year. The CFPB analysis and the cost of payday loans are broken down by Consumerist.com.

Payday Loan Ads Banned By Google

In July, Google caved to consumer pressure and banned payday lenders from utilizing Google Ads (the ads that appear above search results).

“We will be changing our rules internationally to reflect that these loans might result in unsustainable payments and significant default rates for consumers. This move protects our consumers from dangerous financial products…” Director of Global Product Policy, David Graff, blogged.

Facebook banned them in 2015.

WHY INVOICE FINANCE IS BETTER FOR BUSINESS

Payday loans might be handy if you know you can pay them back quickly. With irregular cash flow and unanticipated costs, they might deepen long-term debt.

Making a realistic budget, forecasting cash flow, and learning from your cash flow statement are all preventive actions that company owners may do. But there are cheaper and more sustainable funding options.

Invoice financing is one alternative gaining popularity. Unlike invoice factoring, invoice financing allows you immediate access to cash by advancing outstanding invoices.

The advances assist you manage your cash flow while you wait for accounts receivable bills to be paid. This boost in cash flow is meant to help firms keep up with costs like new equipment or wages.

ConsolidationNow, for example, advances 100% of your due invoice amount. You have 12 weeks to repay the loan plus a minor charge (if you repay early, the remainder of the fee is waived). There is no limit to how many invoices you may advance as long as you stay under your ConsolidationNow Credit limit.

Invoice finance is a good alternative to dangerous and expensive payday loans since it provides same-day cash, keeps costs low, and allows you to access money due to you.

]]> Invoice Finance: a no-brainer for businesses looking to balance cash flow and growth https://bthroughz.com/invoice-finance-a-no-brainer-for-businesses-looking-to-balance-cash-flow-and-growth/ Sat, 09 Apr 2022 13:19:05 +0000 https://bthroughz.com/invoice-finance-a-no-brainer-for-businesses-looking-to-balance-cash-flow-and-growth/ Over the next six months, we expect to see more and more SMEs turning to financing to support their cash flow. Current economic challenges will only amplify this need with global supply chain issues, rising interest rates, soaring inflation, fuel costs and upcoming tax hikes, which threaten all the good progress companies have made over […]]]>

Over the next six months, we expect to see more and more SMEs turning to financing to support their cash flow. Current economic challenges will only amplify this need with global supply chain issues, rising interest rates, soaring inflation, fuel costs and upcoming tax hikes, which threaten all the good progress companies have made over the past 12 months.

Our research continues to reveal that a lack of working capital is one of the biggest barriers to growth a business can face. In fact, more than one in three UK business owners believe access to finance will help them meet and overcome the economic challenges that 2022 continues to throw at them.

In a recent survey*, over 50% of financial advisors and accountants we spoke to highlighted Invoice Finance as a solution their B2B clients would likely turn to this year to free up working capital, overcome and seize new opportunities. But what makes Invoice Finance such an essential and popular solution in these times of economic turbulence?

According to our existing customer base, 73% turn to Invoice Finance solutions not only to improve their cash flow, but also to ensure that their employees, suppliers, HMRC and other financial commitments are paid on time. More than two in three told Time Finance that their bill financing system gave them peace of mind and greater financial freedom. More than half find it a more flexible solution than a bank facility, with the ability to raise or lower funding limits based on their current and future plans.

The benefits don’t stop there. A good funder and financial advisor will ensure their clients have a financial strategy in place to support their business when times get tough. Financial strategies should take a holistic view – taking into account the company’s history, current financial commitments as well as future growth plans. At Time Finance, we do just that.

The burden of repaying loans taken out during the pandemic is a reality that many businesses face, but it seems to be clouded by current market challenges. Just two months ago, 35% of businesses said one of their biggest concerns was the ability to repay those funds. One in five of our existing customer base said working with an invoice finance service provider made financial forecasting easier, and 73% said that as a result they are confident their lender has a good understanding of their business and the challenges they will face through 2022.

But, it’s not just about preparing for the bumps in the road and building up cash reserves. A cautious approach can be wise, but it can also risk leaving companies behind the competition. In fact, more than one in three clients tell Time Finance that they use Invoice Finance to support their investment and expansion plans. Over the next six months and with financial support in place, 45% will seek to invest in sustainable systems, operations, equipment and practices that strengthen their green agenda, while one in three will seek to invest in new ones. talents.

Invoice Finance continues to grow in popularity due to its personal approach to financing. Benefiting from a dedicated relationship manager and access to decision makers, business owners can ensure lucrative opportunities are not missed and decisions can be made quickly. So much so that 91% of clients rank a relationship-focused approach as the most important thing they look for in a funder, compared to just 64% who rank affordability at the top of their wish list.

There’s no doubt that clients who already benefit from Invoice Finance do so because it relieves pressure on their cash flow and gives them the financial freedom to grow and prosper, even when the going gets tough. But when it comes to supporting a business, of course, there are a number of other financial solutions that might be more appropriate for their situation. It is essential that these options are considered and presented to clients so that they can receive the right financial support from the start. This is one of the main reasons why Time Finance offers a wide portfolio of solutions – from asset finance, invoice finance, business loans, real estate finance and vehicle finance. This means that despite the challenges or opportunities ahead, we can help you.

*Time Finance survey of SMEs & Financial Intermediaries in March 2022

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