FAQs | RBS Invoice Finance


FAQs

Answering your most popular questions

 

Security may be required.  Product fees may apply.

Why invoice finance?

How does invoice finance compare to a loan or overdraft?

Unlike loans and overdrafts, which are typically reviewed annually, your invoice finance facility could grow in line with your sales. It also compares favourably with more traditional forms of borrowing in terms of costs.

 

You're likely to be able to raise more funds using invoice finance – and you won't always need additional forms of security.

How much money could I borrow straight away?

This depends on 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 90% of monies owed to you. Please contact us for more details.

Can I speak to a representative face to face about invoice finance?

We have a network of invoice finance offices across the UK, so we should be able to send someone to meet you. But first we'll need to get some basic information about your business such as turnover, which product you might be interested in, and what sector you operate in. To start the process, please get in touch.

About your business

I already use invoice finance with another provider. How easy it it to transfer my account?

Provided all your account details are up to date – and you meet our requirements for minimum turnover – we can take care of transfering you account. 

Do I need to have an account with you already?

No, we don't mind who you bank with. However, once our clients start using our invoice finance service, many of them soon see the benefits of bringing all their banking to us.

I'm the owner of a new business. Can I get invoice finance?

We're happy to consider working with new start-ups - we appreciate that they often have cash flow issues.

 

However, we only work with businesses with a minimum annual turnover of £250k – or at least have plans to generate annual sales at that level. So before agreeing an invoice finance facility with you, we'll need to discuss your finance needs, likely turnover and plans for growth.

Is invoice finance just for failing businesses?

Definitely not. Invoice financing simply improves cash flow, which is something that growing businesses need. Many successful businesses have used our invoice finance services to fund growth.

Does my business need to have a minimum turnover?

Normally, we require a minimum turnover of around £250,000 per year. However, this can vary depending on your business and the type of product provided.

What security will I need to provide?

We will register a fixed and floating charge on the assets of your company, with priority over the book debts from any other charge holders. Any other security requirements will be tailored to your business. 

About us

Why can't you provide an online quotation?

Quite simply, because we don't want to give you an inaccurate or misleading figure.

 

Our products are complex and we need to understand the nature of your business before we can tailor a solution that’s right for you. To do this, we’ll need to talk to you on the telephone or have a face to face discussion.

You only release a maximum of 90% of the invoice amount. What happens to the rest?

90% is the upper limit for the initial payment we make to you. The remaining 10% is paid when your customer settles the invoice, and we deduct our service charge from this.

 

Service charges cover the management of your facility, including our credit control service where used as part of a factoring agreement.

Why is factoring more expensive than invoice discounting?

With invoice discounting, your business has to deal directly with its customers and process its own payments. In contrast, factoring includes these functions as an additional service.

How much does it cost?

This depends on the specifics of your business. Please contact us for further explanation.

How robust is your credit control process?

Our 60-strong team of credit controllers use different databases to check the credit-worthiness of every customer you refer to us. After this, we give them an appropriate credit limit.

How long will it take for me to get my money?

Usually, up to 90% of the money you're owed will be made available to you within 24 hours. The remainder (less charges) will be available to you on full payment of the invoice by your customer.

Will I need to put all my turnover through the invoice finance facility?

In most cases, yes. However there may be some flexibility depending on your circumstances.

What happens if a customer doesn't pay?

No business is immune to this. But we take steps to reduce the risk of it happening to yours.

 

Firstly, we always check the credit-worthiness of your customers. Secondly, if they do default on their payments, our debt recovery team will do everything they can to get you your money.

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

Yes. Our secure FacFlow system gives you immediate online access to your account.

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

Yes. As part of the wider Royal Bank of Scotland Group we understand the issues UK businesses face when trading overseas. Find out more on our Trading Internationally pages.

Any more questions?
Contact us
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