IGF Invoice Finance provides cashflow funding linked to the value of unpaid sales invoices to growing UK business with turnovers generally between £100,000 and £10m per annum.
Our ‘Invoice Discounting’ package allows for more flexible finance solutions whilst allowing each Client to retain control of one of their most important assets, the sales ledger and customer base.
Our facilities can be ‘Disclosed’ in the form of a notice of assignment on each invoice or ‘Confidential’ , where the Client’s customer is not aware of our involvement. A ‘Confidential Invoice Discounting’ facility does require a greater level of financial stability and sales ledger performance.
Our basic criteria
The business must be creating quantifiable trade debts and preferably be able to show at least one year of audited accounts. We would prefer the business to be profitable with a positive net worth and have in place proven sales ledger management and credit control systems and procedures. In most cases our funding facilities work more efficiently where a reasonable spread of customers exists.
However, high customer involvements can be considered if the customer’s payment performance and credit rating prove favourable. The facility can be ‘selective’ if required.
Suitable business sectors
We will consider most industry sectors.
We can make available funding of up to 90% of the gross value of all unpaid sales invoices including those outstanding when the facility commences.
We levy a discounting charge on the outstanding funding drawn down by each client. This is calculated daily on the outstanding balance and charged monthly in arrears. Generally discounting fees range between 2-3% over base rate. We also charge an administration fee calculated as a percentage of total discounted turnover. This will usually range between 0.25%-1%. The administrative fee can be a fixed monthly amount if preferred. Both of these fees are negotiable at the outset, and ongoing, and will form part of the contract between us.
Credit management facilities
Credit insurance facilities can be arranged as part of any package we offer. In the event that a company would prefer to ‘outsource’ their sales ledger management and credit control systems please see our other product sheets.
Our contract is usually for a minimum of 12 months with 6 months notice. This will involve a minimum annual administration charge based on our clients’ projected turnover for the coming 12 months. This is not an additional charge but purely a minimum charge for the forthcoming year linked to the administration fee.
Generally we only provide Invoice Discounting facilities to Ltd status companies. In these circumstances we would take either a debenture over the companies assets or a fixed charge specifically over book debts. Depending on the financial performance and stability of the proposal we would also take directors indemnities or warranties in some circumstances.
For further information, please call us on 0845 835 0597 and ask for details of your nearest IGF Representative.
To find out more call us on
08452 30 40 50
and ask for details of your nearest IGF Representative