Factoring

Want to improve your cash flow and free up more time to concentrate on running your business? With our factoring facility service, you can raise cash against unpaid invoices and have your customer payments collected and managed by us.

At a glance

  • Get up to 90% of the value of your invoices the next working day

  • Have your sales ledger expertly managed by our dedicated team

  • Add credit protection to guard against late payment or bad debts

  • Arrangement fees apply

Key benefits

Improve your cash flow by releasing working capital tied up in unpaid invoices

Focus on running your business as your dedicated Credit Controller will take care of your sales ledger

Avoid the hidden costs of providing extended credit to your customers

Protect your profits with our Credit Protection service

Secure funding that grows in line with your sales

Save time and keep up-to-date with your account using our online service

Is Invoice Finance right for your business?

If any of the following apply to your business, our factoring service could meet your needs:

  • your sales are growing and you need to know that your cash flow will keep pace
  • you have a lot of money tied up in the sales ledger that could be working harder for you
  • you're funding a major purchase or planning a management buy-out/buy-in and want the sales ledger to fund your working capital needs
  • you're moving into trade credit sales for the first time and want to control customer credit without a big increase in workload
  • you're spending increasing amounts of time and resources chasing payment and you want to look at cost-efficient alternatives.

As a general guide, our factoring service is suitable for businesses who:

  • Sell to other businesses on credit terms
  • Have a projected business turnover over £500k (including start-ups)

Invoice Finance is available to businesses that bank elsewhere as well as HSBC business customers.

How it works

Factoring releases cash from your invoices next working day. Here's a quick overview of how it works:

  • You provide the goods/services to your customers and invoice them as usual
  • You send your invoice details to us electronically
  • We advance up to 90% of your invoices' value by the next working day
  • When your invoices are due for payment, your dedicated Credit Controller will collect the payments from your customers
  • When the invoices are paid, you receive the balance minus our charges

The whole process is quick, easy - and it can all be managed online.

FAQs

Getting started

Do I have to bank with HSBC?
No, you don't, but in many cases our clients find it easier and more cost-effective to do so.

I'm just setting up my business, can you still help?
Yes, we finance both start-up and existing businesses, as well as management buy-outs and management buy-ins.

I'm not a limited company; can I still use your service?
Yes we work with a range of businesses from sole traders and partnerships to international conglomerates to provide them with their funding needs.

How long do I have to sign up for?
We ask for a minimum of a year's contract with three months' notice period.

I'm factoring already with another company, is it easy to switch?
Over the 50 years we've been in business, we have switched many, many clients who were using alternative providers. We will liaise with your existing provider to ensure that the change is simple and pain-free.

I export as well, can you help with that?
We are one of the largest export factors in the UK. We have multi-lingual staff based in the UK to collect invoices from most countries around the world. In addition, we are founder members of The Factors Chain International.

Do I have to use your credit terms?
No, as long as the credit terms that you have agreed with your customers are 'reasonable' for the market in which you are operating, then your existing agreement would continue.

Services we offer

What type of credit control do you provide?
We provide you with a designated credit controller, who understands the need to collect in your debts whilst also protecting your customer relationship. Also, our service proposition includes monthly statements, automatic chasing letters and telephone chasing throughout the month on all your customers.

What if I want to run my own sales ledger - is there anything else on offer?
For larger clients with a turnover in excess of £1million, then invoice discounting may be an option. Please contact us for more information.

Why should I consider credit protection?
Our facility provides up to 100% cover subject to a first loss on eligible debts in the event of your customer's insolvency or inability to pay for 120 days past invoice due date. We also provide an in-house legal service to pursue unpaid invoices at no extra cost for the credit-protected percentage of the debt. You can easily request, set up and review customer credit limits via Internet Invoice Finance, and these are normally assessed within 6 hours.

Accessing your funds

What percentage of my invoices will you release for pre-payment?
As each facility is individual the pre-payment percentage will vary, but it is usually up to 90%. We will advise you of the percentage before you start using our services.

How soon after sending an invoice will the money be available to me?
Typically, funds can be made available to you within 24 hours of an invoice being received. Unlike some other factoring companies that make you wait until payment has cleared, we allow you to draw against funds the next day.

Charges

How will I be charged?
There are two charges involved. There's a discounting charge, like an interest charge, which is calculated on the amount of money that you actually draw down. And there's also a service charge which covers all the collections and sales ledger management work we carry out, including the processing of invoices and chasing of payments.

How much will your factoring service cost?
Each agreement is different and is priced individually. To find out more, give us a call on 0800 731 8918.

For customers of our factoring clients

I need to pay an invoice, what is HSBC Invoice Finance bank details?
To find our bank details, please visit the 'Making payments' section of our customer services website.

How do I request a copy invoice?
To request a copy of an outstanding invoice, please visit the 'Contact us' section of our customer services website.

Important information

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