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What are your criteria for Invoice finance? Are we suitable?
For factoring, you need to be forecasting sales of at least £75,000 in the coming year; £500,000 for Invoice discounting; or £50,000 for Export Factoring.
Would you expect all our turnover to go through any facility we set up with you?
Generally this is normal because it is much easier for you to administrate, and of course you receive the maximum level of funding possible. However, in exceptional circumstances, we may consider excluding certain debtors.
What security will you need?
If you’re a limited company, we usually ask for a standard bank debenture. Just occasionally, we also ask for a limited personal guarantee from the directors. Sole traders and partnerships, by the nature of their business, are personally liable. However, we can also provide protection against bad debts; please ask us for more details.
What are the costs?
This will vary according to your turnover, the number of debtors and the precise package you choose. However, you may well find that the additional turnover and profit enabled by the facility may also meet its costs.
How much funding can you provide?
We can usually advance up to 95% of the value of your sales invoices.
We trade a lot overseas. Can you fund those invoices as well?
Certainly. We work with numerous UK businesses exporting around the globe.
Like many banks, do you put receivables-based finance through a subsidiary?
No, and if you’re concerned about confidentiality this can be important if a partner or supplier chooses to search your accounts at Companies’ House. All they will see is a debenture registered to ‘Barclays Bank PLC’.
Will you need to see all our invoices each week?
No. We operate most facilities with a web-based link, so we don’t need to see copy invoices and credit notes.
After the initial payment, how quickly do we receive the balance?
We forward this to you once your customer has settled your invoice with us.
What about future invoices: how quickly will we receive funds against them?
If needed, we can forward advances on the working day after we receive them.
We don’t bank with Barclays. Is that a problem?
Not at all. We work with many businesses who bank elsewhere.
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