5 Tips for Invoice Finance

Invoice Funding

Invoice finance and factoring are reliable solutions for obtaining funds for a developing business. However, one needs to understand the market before taking up any of these financing options, as there are several other options of funding available. Listed below are 5 tips that will help you in making informed decisions:

1. Save money on borrowing costs As a business owner you should only draw down funds that are required from the financier, as funds borrowed will attract an interest payment for the amount of time such funds are outstanding. 2. Confidential financing - factoring The choice of method depends on the finance team that a business has employed. In the event that there is a...

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New UK Invoice Platform Emerges

Invoice Funding

A new online invoice finance solution has appeared on the UK’s alternative finance scene. Companies struggling with cash flows, while waiting for invoices to be paid, now have a new option by the name of Funding Invoice.

Founded by Aamar Aslam, a recent Warwick economics graduate, the recently launched platform matches small businesses with a network of potential investors, who can purchase invoices and provide up to 90 per cent of their value immediately. The rest of the money will be provided only when invoices have been paid and investors are charged a small fee whenever that happens. The platform is keen on highlighting that only investors are charged, while SMEs are not.

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Business Confidence Set to Nose-dive

Invoice Funding

Business confidence is expected to plummet to its lowest level since the beginning of 2014 according to new findings.

The Bibby Financial Services’ latest SME Confidence Tracker suggests that business owners are taking a cautious approach to capital expenditure, hiring and business growth.

The report shows that less than half (46%) of SMEs expect their business to grow, down from 64% in Q1 2014, when the survey began.

David Postings, Global Chief Executive of Bibby Financial Services, said:

“UK SMEs are sensing dark clouds on the economic horizon, which is translating into dampened expectations for growth in the final months of 2015.”

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GapCap Closes £1m Equity Fundraise

Invoice Funding

One of the invoice finance sector’s more nascent players is gearing up for growth.

GapCap has been steadily building up a unique working capital solution for small businesses in the UK. The platform has now announced the successful closing of a £1m Series A funding round. Alex Fenton, Founder and CEO of the platform, dropped into AltFi HQ to tell us more.

The £1m round has been financed by a number of private investors, led by a group of established banking and debt finance professionals. This is the first time that GapCap has taken on a significant injection of equity capital. Mr. Fenton outlined how the money will be spent:

“The money will be used to crea...

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Platform Black hits £100 million funding milestone

Invoice Funding

 Platform Black today announced it has funded over £100 million in invoices for UK SMEs. The provider of alternative finance has reached this milestone in just three years since the company's inception, an achievement which highlights the soaring demand from UK businesses for access to sources of working capital.

"This significant milestone sees us join an exclusive club in the P2P lending space. We are one of only a few that have raised over £100 million, which is testament to the strength of our business,” said John Regan, director, Platform Black. “This benchmark demonstrates our commitment to supporting SMEs seeking...

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Safeguarding the Future for Alternative Finance

Invoice Funding

By Will Larwood, GapCap

As mentioned in GapCap’s previous blog “Shaking off the ‘Alternative’ tagline” one can clearly see that the alternative finance market is growing significantly, with growth continually doubling in size year on year since 2012 and predicted growth in 2015 to reach £4.4bn. This is fantastic news for small businesses as they are able to gain access to finance that is simpler and cheaper than that of a traditional bank loan. Yet as this market continues to grow, one must be wary that it could mutate into a younger model of the traditional lending methods that businesses, in particular SME’s have loathed. The ...

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Bibby Appoint New Global CEO

Invoice Funding

David Postings has been appointed as Global Chief Executive Officer for Bibby Financial Services (BFS), part of the 208-year-old Bibby Line Group.

Mr Postings – who joined BFS as UK CEO in April 2012 - took-over as interim-Global Chief Executive following the departure of Simon Featherstone in August.

With 37 years’ experience in financial services, Mr Postings has held senior roles at Lloyds TSB, Barclays and TTT Moneycorp. He will start his new role with immediate effect, heading up a global team of 1,300.

Sir Michael Bibby, Managing Director of the Bibby Line Group said: “I’m delighted to announce David’s permanent appointment as Global CEO of Bibby Financial Services.

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Bibby Expands in the East Midlands

Invoice Funding

Business funder, Bibby Financial Services (BFS), has announced the opening of its new East Midlands Business Centre in Leicester, including the expansion of its existing operations at Grove Park, Enderby.

The news comes as figures from BFS’ SME Confidence Tracker reveal improving confidence in the region, with over half of East Midlands-SMEs expecting sales growth and more than two-thirds planning to invest in the months ahead.

Sharon Wiltshire, Managing Director for Bibby Financial Services in the East Midlands says:

“The East Midlands is a hotbed of entrepreneurship and it’s evident that local businesses are confident about future prospects, which is fan...

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Banks Punish SMEs with Hidden Fees

Invoice Funding

A new report has revealed that UK banks are charging SMEs, in need of short-term finance, £425m a year in 'hidden' extra costs.

Invoice financing platform, Market Invoice, has found that 26,000 businesses that have invoice finance contracts through banks face up to 35 hidden costs on top of interest and service fees.

UK businesses are being charged £758m per year by banks for invoice finance, which is £425m more than what alternative finance providers are charging. The research has been based on revenues from banks’ invoice financing arms and showed high street lenders charge 6.4p on average for every £1 of invoice finance.

Because invoice financing is unr...

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MarketInvoice Strikes Major Funding Deal

Invoice Funding

By AltFi – for the original article, click here.

Leading online invoice finance platform MarketInvoice has secured a funding commitment of up to £200m per year.

Pension fund-owned lender Fiduciam is set to purchase £50m of invoices each year, but can stretch that figure to £200m per annum depending on the balance of supply and demand. Due to the inherently short average life cycle of invoice finance trades (40 days), AltFi Data estimates that the £50m a year funding commitment will in fact equate to a total of £5.5m being deployed on the platform at any one time. At the upper limit of the agreement (£200m a year), roughly £22m be will be put to ...

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The way Forward is Invoice Financing

Invoice Funding

Some new research by Neopost has revealed that invoices are still causing a huge problem for UK SMEs.

Invoices make up nearly a third of all SMEs outgoing communications and the majority of SMEs are struggling to work their way through the current invoicing processes.

One major problem that invoices cause is time consumption and 77% of the 280 SMEs that took part in the survey said that they manually add information to each of their invoices.

Another 22% admitted they didn’t know whether or definitely did not track their invoices, hampering their ability to identify and chase late payers.

Erwan Kernevez, digital solutions director at Neopost, ...

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Trade Finance Roundtable Roundup

Invoice Funding

Last Wednesday afternoon, in the lofty recesses of Experian’s rather dazzling Cardinal Place offices, an illuminating roundtable discussion all about the trade finance sector took place.

As discussed in a recent column on AltFi, trade finance providers have up to now sat somewhat on the periphery of AltFi’s core area of interest. The main reason for this is that none of them currently feature a dynamic online exchange. In other words, you cannot gain access to real-time investment opportunities via a trade finance company (yet). But these are a group of companies that are delivering a much-needed service to SME importers and exporters all over the world, and they are also g...

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Louise Beaumont Joins GLIF

Invoice Funding

Dr. Louise Beaumont – Founder of Platform Black and one of the best-known proponents of the UK alternative finance space – has now accepted a new role with one of the industry’s most prolific institutional backers.

Louise will henceforth serve as the Head of Public Affairs and Marketing for GLI Finance and its increasingly diverse family of alternative finance providers. Her task will be two-fold, broadly speaking: to establish GLIF globally as the first port-of-call for SME finance providers looking for a strategic partner. And secondly, to elevate all GLIF-backed platforms into a position of market leadership within their chosen fields.

Louise explained:

“In a world where the lack of SME...

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PWC Conclude Another Huge Deal

Invoice Funding

PWC has moved further into the alternative finance space by joining forces with another major platform.

A deal between the accountancy firm and Market invoice was struck yesterday and the arrangement will see PWC informing its clients about the services that Market Invoice offer, while the platform will refer SME owners to the My Financepartner team at PWC. .

My Financepartner is a cloud-enabled accounting service that helps small businesses access the expertise and support offered to many of the UK’s leading companies on a flexible basis at an affordable price. Once a business is signed up it will receive a number of mentoring sessions from the My Financepartner team who will ...

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