Invoice Finance FAQs

Factoring, invoice discounting and asset based lending are often misunderstood - especially when it comes to cost. We are here to put the record straight.

• Why can't you provide an online quotation?

  Quite simply, because we don't want to give you an inaccurate or misleading figure. Factoring, invoice discounting and asset-based lending are complex products to cost - we need to understand the nature of your business, your customer base and precisely what you would like to achieve. This requires a telephone conversation or face-to-face discussion, so that we can provide a tailored quotation.

• You only release a maximum of 85% of the invoice amount. What happens to the rest?

  The 85% is the usual upper limit for the initial payment we make. However, we certainly do not keep the remaining 15%. This is paid when your customer settles the invoice, minus our service charges. Service charges cover the management of your facility, including our credit control service where used as part of a Factoring agreement - when we collect money on your behalf.

• I prefer to use a loan or overdraft to get capital into my business. Why should I even consider invoice finance?

  Invoice finance is a flexible facility which grows in line with your sales, unlike traditional facilities such as loans and overdrafts which are typically reviewed annually. When you look closely at costs, invoice finance can compare favourably with overdrafts and the other 'hidden' costs of undertaking key activities yourself. Loans and overdrafts will not usually match the amount of funds available through invoice finance - and they will often require you to offer additional forms of security.

• Why is factoring more expensive than invoice discounting?

  With factoring, we process payments and deal directly with the clients who owe you money. With invoice discounting, your business would have to perform all these functions. Factoring is an added-value service that is particularly useful for companies that don't want to bring these functions in house.

• I'm interested in using RBSIF, but I want to speak to a representative face to face before I make a decision. Is this possible?

  Yes. We have a network of invoice finance offices across the UK, so we should be able to send someone to meet you. First, though, we will need to know some preliminary information about your business (turnover, which service you might be interested in, what sector you operate in, etc). To start the process, please get in touch.

• If I use RBSIF, how much money will I be advanced immediately?

  This depends on a number of factors, such as the strength of your sales ledger and the credit rating of your customers, as well as the invoice finance facility you choose. In most instances, we will advance up to 85% of monies owed. Please refer to our Pricing section for further details.

• I'm the owner of a new business: will you take me on?

  In principal, yes. We are certainly not opposed to partnering new businesses (and we appreciate that new businesses often have cash flow issues). Of course, every business is unique, and we'd have to work with you to discuss your finance needs, your likely turnover and your plans for growth. As a rule of thumb, we usually only work with businesses that have a minimum turnover of £250k.

• Do I have to bank with RBS already?

  Not at all. We don't mind who you bank with, although many of our clients soon see the benefits of bringing their total banking and invoice finance arrangements to RBS if they are not currently customers of RBS or NatWest.

• How robust is your credit control process?

  Very robust indeed. Our business model is premised upon Approve - Fund - Protect - Collect. The first part of that model - Approve - is given over to credit control. We have access to six different credit-based databases; our 60-strong team of credit controllers carefully check the credit worthiness of every customer you refer to us, and we give them an appropriate credit limit.

• How much does it all cost?

  That depends. Please refer to Pricing for a detailed explanation; for an even more detailed explanation, please contact us.

• Once I've issued an invoice, how long does it take before I can get hold of my money?

  In normal circumstances, up to 85% of monies owed will be made available to you via FacFlow within 24 hours. The reminder (less charges) is available to you upon full payment of the invoice by your customer.

• What is the minimum turnover you expect of me?

  Normally, we require a minimum turnover of around £250k p.a although this will differ depending on your business and the type of service provided.

• What happens if a customer simply doesn't pay?

  No business is immune from this, but we take steps to reduce the risk of it happening to yours. In the first place, we go to great lengths to check the credit worthiness of your customers; if they do default on their payments, we will work with you to recover these monies, via our debtor recoveries team, who have experience in recovering monies in such situations.

• Will it be necessary to put all my turnover through the invoice finance facility?

  In most circumstances, yes.

• I'm interested in trading abroad. Can you help?

  Yes. As part of the wider RBS Group we have an in-depth knowledge of the issues that UK businesses face trading overseas.

• I'm with an invoice finance provider already. How easy is it to transfer my account?

  Provided all your account details are up to date and you meet our requirements for minimum turnover, just leave it to us. We'll make the transition as quick and as easy as possible.

• I need immediate access to my account. Is this possible?

  Yes. Our secure FacFlow system is especially designed to give you online access to your account.

• Isn't invoice finance just for failing businesses?

  Not at all. Invoice financing is simply a method of improving cash flow - which is something that growing businesses need. Furthermore, it doesn't make sense for us to take on failing businesses. Many successful businesses use RBSIF's services to fund business growth.

• What security will I need to provide?

  RBS IF will register a fixed and floating charge on the assets of your company, with priority over the book debts from any other charge holder(s).

Security may be required. Product fees may apply.