Invoice finance – B Through Z http://bthroughz.com/ Wed, 18 May 2022 10:50:21 +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 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

]]>
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.

]]>
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

]]>
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

]]>
Time Finance: Recognized for providing a first class invoice finance service https://bthroughz.com/time-finance-recognized-for-providing-a-first-class-invoice-finance-service/ Tue, 05 Apr 2022 08:09:22 +0000 https://bthroughz.com/time-finance-recognized-for-providing-a-first-class-invoice-finance-service/ Time Finance is delighted to announce that it has won the top spot in Business Money’s 25 rankingand Review of receivables from the Invoice Finance sector. The annual Customer Intermediary Index recognizes and celebrates leading providers who provide excellent service to their customers, from onboarding and assessment, to relationship management and retention. In partnership with […]]]>

Time Finance is delighted to announce that it has won the top spot in Business Money’s 25 rankingand Review of receivables from the Invoice Finance sector. The annual Customer Intermediary Index recognizes and celebrates leading providers who provide excellent service to their customers, from onboarding and assessment, to relationship management and retention.

In partnership with the National Association of Commercial Finance Brokers (NACFB), Business Money surveyed UK business introducers – from financial advisers to brokers and accountants – to rank a total of 47 UK-based invoice finance providers . Time Finance and eCapital Commercial Finance (formerly Advantedge) won first place, followed by Close Invoice Finance in third place.

Phil Chesham, Bills Finance Manager, said: “This is a fantastic and very well deserved achievement for our team. It is a testament to the commitment of the people we have here who are passionate about supporting our customers and making a real difference to their success.”

Time Finance delivered Invoice financing solutions for over 15 years. During this period they have supported businesses from all corners of the UK and assisted with a wide range of growth plans from investment to expansion, mergers and acquisitions as well as problem solving cash.

Norman Chambers, CEO of NACFB commented: “NACFB works closely with Business Money: our nationwide members are highly professional and work with finance companies and other professionals to provide carefully tailored solutions to business financing needs.

We operate under a strict code of conduct and the Business Money Intermediate Index, launched in 2012, monitors the services provided by billing financiers to our members and their customers. Last year, our members secured £41 billion in new finance facilities, of which bill financing played a significant role.

As the Business Money report shows, our members monitor a lender’s ongoing service, long after the transaction is complete. Relationships are everything in trade finance.”

Phil continued: “Our priority is and always will be to build strong relationships with our customers. This starts with understanding the context of the business, the director’s vision for the future and how we can work together to spot opportunities and overcome challenges. It’s no surprise that our highest score was achieved by delivering excellent levels of customer service.Our teams are easy to manage and have a no-nonsense approach to doing business, which is why the average lifespan of our customers is 5 years. That’s 2 years longer than the industry average*.

“We know that our solutions play an important role in helping businesses rebuild the economy and we are committed to providing these businesses with solid financing solutions that inspire confidence and growth. We have ambitious plans to drive change on the market and lead the way as we support SMEs more.”

In addition to financing facilities ranging from £10,000 to £2.5m, Time Finance offers complementary services to its Invoice Finance solution. Their XTRA Time installations help customers access additional financing on top of their existing installations, not only to increase cash flow and to have the peace of mind that additional financial support is available whenever they need it. need. Time Finance’s optional Selective Bad Debt Protection product mitigates the risk of bad debts and allows customers to choose which customer they wish to cover.

*Source: fund invoice

]]>
What are the advantages and disadvantages? https://bthroughz.com/what-are-the-advantages-and-disadvantages/ Mon, 21 Mar 2022 13:00:00 +0000 https://bthroughz.com/what-are-the-advantages-and-disadvantages/ Whether your business is finding its feet or already an established player in your industry, cash flow management remains an ongoing challenge. This is doubly true for companies that invoice other companies. If you find yourself looking for unpaid bills more often than you would like, bill financing offers a potential solution. Below, we explore […]]]>

Whether your business is finding its feet or already an established player in your industry, cash flow management remains an ongoing challenge. This is doubly true for companies that invoice other companies.

If you find yourself looking for unpaid bills more often than you would like, bill financing offers a potential solution. Below, we explore some of the pros and cons businesses should be aware of if considering invoice financing.

Benefits of Invoice Financing

Generally, some of the main benefits of using invoice financing are:

  • Secured against your bills
  • The facility grows with your business

Secured against your bills

Traditional business loans often require some form of collateral, and if you opt for an unsecured loan you may find that they tend to attract higher interest rates. Newer companies and those with limited assets might not find either option suitable.

Invoice financing, on the other hand, is secured by the value of customers’ unpaid invoices. In addition to removing some of the barriers to accessing finance, it also makes it less risky for the borrower, as the funds are already due to them.

“Using your receivables as collateral, you can quickly access valuable cash without having to pledge goods or equipment and keep your balance sheet intact,” said Joe Donnachie, supply chain finance manager. at Octet.

Cash flow improvement

Unlocking money tied up in unpaid invoices means your business gets paid immediately, rather than waiting over a month for customers to pay.

Donnachie explains that growing receivables can become a source of concern for many business owners, especially if they are accumulated enough that the business is at risk of a dreaded cash flow crisis.

“With an invoice financing facility, however, you can turn that asset into readily available cash and keep your business on track for high growth,” he said.

The facility grows with your business

Unlike a business loan, which offers a specific amount to be repaid over a set period of time, the amount of financing available through invoice financing increases as your business generates more invoices.

Founder and CEO of Timelio, Charlotte Petris explains that this flexibility can work well for companies going through a phase of strong growth or experiencing seasonality in demand.

“For these businesses, it can be difficult to accurately forecast cash flow needs and having a financing mechanism that is flexible and that scales with the demands of the business is critical,” she said.

Disadvantages of Invoice Financing

Some of the disadvantages you might encounter when using invoice financing include:

  • Installation may be leaked
  • Less funding during low seasons

Installation may be leaked

Some forms of invoice financing involve the sale of your accounts receivable ledger to a third party, who will then assume responsibility for continuing payments. This can create problems for business owners who want to keep their financing needs private.

If you have any questions about privacy, be sure to speak with your lender before signing up. Although customers are required to pay bills directly to a lender’s bank account, you may be able to arrange for this to be done confidentially.

Less funding during low seasons

Of course, the flip side of having a facility that grows with your business is that funding can dry up during slower times. While additional cash may not be needed to cover day-to-day operations, it can be a problem if you rely on invoice financing to grow your business.

Who is Invoice Financing for?

If your business has other businesses as customers, offers long payment terms, and does not have immediately available collateral, it could benefit from using invoice financing.

“There are many types of industries that depend on invoice financing, for example, manufacturing, professional services, construction, labor leasing, wholesale, recruiting are just a few- ones,” Petris said.

“Because the invoice or receivable is used as collateral for financing, it is a popular choice for service companies that do not have significant assets or plant and equipment on their balance sheet to use as guarantee.”

For more information, see our guide to financing small business invoices.

]]>
How Automation Helps Invoice Finance Lenders Detect and Stop Fraud Faster https://bthroughz.com/how-automation-helps-invoice-finance-lenders-detect-and-stop-fraud-faster/ Mon, 07 Mar 2022 22:14:36 +0000 https://bthroughz.com/how-automation-helps-invoice-finance-lenders-detect-and-stop-fraud-faster/ By Venugopala Dumpala, Head of Practice Banking and Financial Services At the start of a new year, we often see an increase in invoice financing fraud – when customers seek to borrow money by providing inaccurate information to lenders. (Not to be confused with invoice fraud which sees fraudsters send out fake, real-looking invoices to […]]]>

By Venugopala Dumpala, Head of Practice Banking and Financial Services

At the start of a new year, we often see an increase in invoice financing fraud – when customers seek to borrow money by providing inaccurate information to lenders. (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 fake, duplicated, or re-arranged invoices, fake credit memos, misappropriated receipts, and general ledger reconciliation challenges.

Invoice financing fraud becomes more difficult 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.

  1. 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.

  1. 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.

  1. Increased verification

Checking bills, new borrowers and their creditors is crucial to factoring and invoice 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.

  1. Speeding up the general ledger reconciliation process

Effective general ledger reconciliation is essential for invoice discount lenders – unfortunately, it is often slow and error-prone. First, it takes two weeks for customers 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.

  1. 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 disturbance 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.

]]>
2022: The rise and evolution of Invoice Finance to support business growth https://bthroughz.com/2022-the-rise-and-evolution-of-invoice-finance-to-support-business-growth/ Tue, 08 Feb 2022 20:12:14 +0000 https://bthroughz.com/2022-the-rise-and-evolution-of-invoice-finance-to-support-business-growth/ 2022 is set to be a transformative year for business with innovation, recovery and prosperity at the forefront. We don’t expect the next 12 months to be without challenges, but we anticipate that Invoice Finance’s continued growth and evolution will only serve to support the growth of the business. Looking to the year ahead, Phil […]]]>

2022 is set to be a transformative year for business with innovation, recovery and prosperity at the forefront. We don’t expect the next 12 months to be without challenges, but we anticipate that Invoice Finance’s continued growth and evolution will only serve to support the growth of the business. Looking to the year ahead, Phil Chesham predicts what business owners will be looking for over the next 12 months and how essential Invoice Finance will be to support that.

A new year means new opportunities

As the dust settles on 2021 and we begin a new year, many companies will see this as a chance to review, reset and reinvest. New opportunities come in all shapes and sizes, whether to innovate existing offerings, enter new markets, invest or expand. We know very well that with any new business comes strategic planning, cash flow forecasting and budgeting – because while seizing new opportunities can lead to winning new business, it can also lead to increased costs. The benefit of Invoice Finance is not only its ability to free up additional working capital to fuel these opportunities, but it naturally complements growth with lines of finance that grow as the business grows. Invoice Finance providers regularly review these lines of finance to ensure that the facility provided is not only suitable for their client’s current situation, but also for their future ambitions.

Invoice Finance – a favorable choice in the face of rising interest rates

The news of an interest rate hike in December was undoubtedly worrying for those who have relied on short-term bank financing to bolster their finances. With interest rates likely to rise again throughout 2022, this creates a situation for many where the interest repaid is greater than the loan or line of finance itself. Changes of this nature further amplify the importance of preparing cash flow forecasts and the need to build flexibility to deal with contingencies such as rising cost of borrowing. The good news is that there are plenty of affordable financing options out there, and Invoice Finance is one that typically charges lower interest rates than banks. So, with further interest rate hikes looming, the focus on researching available financing options and comparing costs will undoubtedly be at the forefront of business owners’ minds this year. Invoice Finance will undoubtedly have an important role to play here by providing additional flexibility and peace of mind.

Zombie companies will stop walking among us

Over the past 18 months, thousands of businesses have been helped by government support initiatives. So much so that Insolvency Service statistics for the fourth quarter showed the total number of business insolvencies fell to its lowest annual level in 2020 since 1989. While the latest round of support measures is coming to an end and refunds are now due, the so-called “who continue to walk among us but are bound to fold, will no longer be supported by this additional support. This will also be a difficult time for viable businesses, and it is therefore essential to recognize which companies have a strong future ahead of them.Invoice financing providers are in an ideal position to offer support and play a vital role in ensuring that these viable companies succeed in standing out and thriving. relationship-driven approach means we step away from algorithms and truly understand the story behind a business and can support deny its ability to make it a success.

Sustainable investing will take center stage in 2022

Our impact on the environment has been in the headlines after COP26 and the pressure is on UK businesses to act now. Many are considering more sustainable practices such as buying recycled resources and equipment, reducing travel or using more environmentally friendly forms, modifying their supply chain to team up with partners more sustainable and zero carbon production targets. Our latest research with our own Invoice Finance clients confirms this, revealing that 4 in 5 business owners do not have the systems in place to monitor their impact on the environment, yet 45% plan to invest in these systems and /or new operations. , equipment or practices over the next 6 months to address them. Invoice Finance continues to be a top choice for business owners here by relieving pressure on cash flow and providing the financial freedom to advance their investment priorities.

Whatever the year 2022, Invoice Finance vendors will be there to help business owners meet new challenges or seize new opportunities.

]]>
Timelio acquires the bill finance business of Bendigo and Adelaide Bank https://bthroughz.com/timelio-acquires-the-bill-finance-business-of-bendigo-and-adelaide-bank/ Tue, 08 Feb 2022 08:00:00 +0000 https://bthroughz.com/timelio-acquires-the-bill-finance-business-of-bendigo-and-adelaide-bank/ A Melbourne-based fintech has announced a deal with Bendigo and Adelaide Bank to acquire its bill finance business. Cash flow finance lender Timelio has acquired the banking group’s invoice finance business for an undisclosed amount and has entered into an exclusive referral partnership agreement for invoice finance opportunities over the next three years. The acquisition […]]]>

A Melbourne-based fintech has announced a deal with Bendigo and Adelaide Bank to acquire its bill finance business.

Cash flow finance lender Timelio has acquired the banking group’s invoice finance business for an undisclosed amount and has entered into an exclusive referral partnership agreement for invoice finance opportunities over the next three years.

The acquisition of the $50 million loan book brings Timelio’s funding book to $100 million.

From March 1, 2022, existing Bendigo and Adelaide Bank customers will transition to Timelio’s platform for bill financing needs. The bank will continue to provide all other banking services.

Timelio said customers will have access to “unique benefits” once on its platform, including same-day financing, a simple fee structure” and a dedicated specialist support team of qualified accountants.

Founder and Managing Director of Timelio, Charlotte Petris, said: “The agreement will double the size of our business to $100 million in funding and allow Timelio, Bendigo and Adelaide Bank to leverage our respective strengths to enhance results for customers.

“We are delighted with the exceptional growth momentum of our business over the past 12 months. We have seen a 150% increase in our funding volume over this period, including an 80% increase since Goldman Sachs began funding in October. »

Brian Buckle, Head of Specialist Solutions at Bendigo and Adelaide Bank, added: “Timelio’s strong technical solution, deep industry knowledge and customer-focused culture make it an ideal partner for Bendigo and Adelaide Bank.

“Our agreement is part of a strategic move that aligns with our commitment to simplify our business, reduce complexity, and demonstrate our shared commitment with Timelio to ensure our valued customers are well supported to achieve their financial goals.”

DISCOVER

The deal follows Timelio’s $270 million warehouse financing agreement with Goldman Sachs, established in October 2021.

The funding – and the new acquisition – enables the fintech to grow its small business loan portfolio against unpaid invoices.

Timelio’s funding has grown 300% over the past three years, with fintech investors including Thorney Investments and Anthony Thomson, co-founder of neobank 86400, which was acquired by National Australia Bank last year.

The fintech, which launched in 2015 and works with the broker channel, has reportedly provided $1.5 billion in funding to its clients. The average size of its loans is said to have increased from $250,000 to $1 million over the past three years.

[Related: Bendigo Bank to launch home loans to brokers]

Timelio acquires the bill finance business of Bendigo and Adelaide Bank




TheAdviser Logo


Last update: March 09, 2022

Posted: February 08, 2022




Annie Kane

Annie Kane

AUTHOR

Annie Kane is the editor of The Adviser and Mortgage Business.

]]>