Do you think you are being overcharged by your provider, or are not receiving the service you were promised?
Invoice finance is sold as a simple concept: “You give us an invoice and we pay an agreed percentage of that invoice up front, with the balance being held as security until the debt is paid.” What tends to happen is that a salesman works hard building a relationship, the client signs up and the salesman disappears. The relationship with a Client Manager is rarely the same, his time is spent managing risk and often has only the time to service high risk accounts. The irony being that if a model client causes little or no problem, they are ranked low in priority in respect to relationship (unless of course they terminate their agreement). As ex industry managers, we know that in general they are desperate to improve relationships and provide training that is obviously needed.
The lack of training across the industry means that it’s common for users not to know how their facility operates, or how availability is generated. More importantly, the sheer volume of paperwork makes it seemingly difficult for you to know;
- Where and how much you are spending
- Why you possibly feel that your invoices don’t ever seem to generate a full 75%
- What is a retention and how is it calculated
- Why I can’t ever reconcile my account to the providers
- How to use the online system
The truth is that there are countless businesses using invoice finance products that are unnecessarily experiencing cash flow pressure. Often, much-needed working capital (availability) is hidden away in retentions, such as over limits, unresolved disputes and unpaid debts. All you need to know is how to unlock it.