Cash Flow

Don't let the terminology and jargon confuse you. Cash Flow finance is one of the most flexible range of solutions and sources of finance for your Business.

Problem: You're making the sales but your cash flow is not flowing smoothly in your Business.
Solution: Factoring or Invoice Discounting - Disclosed, Confidential or non-recourse.

Essentially the basics of Factoring and Invoice Discounting are the same. Your business is given access to an ongoing supply of cash that is linked to your sales. So as your business grows so does the amount of funds available. When you raise an invoice to your customers, you also send that invoice to a cash flow lender. The lender then gives your business up to 90% of the value of that invoice in cash within 24 hours. No more waiting 30,60 or 90 days for payment from your customers. The remaining 10% is paid to you once your customers pay their invoices. The cash is available for you to use as and when you choose. Your customers make payments to the lender via a specialist bank account.

Invoice Discounting: For larger businesses turning over in excess of £1 million per annum and trading profitably. Your Business is still in control of raising client invoices and following up debt collection.

Disclosed: Your customers are aware that you are utilising this type of funding.

Confidential Invoice Discounting: Your customers are unaware that you are using this type of funding. The Lender sets up a bank account which they control, but which is in your name. Your customers then make payments against their invoices into this account.

Factoring: For all sizes of business including start ups. The Lender prepares and sends out statements, telephones your customers, collects payments for you and maintains professional and detailed accounts of your transactions so that you have more time to concentrate on generating new business.

Disclosed Factoring: Your customers are aware that you are utilising this type of funding.

Confidential Factoring: Your customers are unaware that you are using this type of funding. The lender provides a confidential sales ledger management service where they chase and collect outstanding invoice payments from your customers in your name. They will prepare and send out statements which will carry your logo, telephone all your customers in your name, collect payments for you and maintain professional and detailed accounts of your transactions.

Non recourse Factoring: is an insurance policy that provides bad debt protection, providing you with peace of mind that you will get paid even in the event of one of your customer's insolvency or inability to pay.

The Problem: You have an order but your cash flow cannot support the fulfilment of it, leaving you with the risk of losing valuable new business opportunities
The Solution: Accessing funds

Accessing Funds: If you want assistance buying goods and have a confirmed order but do not have the funds to fulfil it, a cash flow lender will provide between 80 - 100% of the total order value up front to help you complete the order. The lender will pay your suppliers for you and collect the monies from you customers once they have received goods. They will then refund the monies to you minus an administration fee and purchase payment.

The Problem: Making those overseas sales seemed relatively easy. But getting paid is more difficult. Language, currency and differing cultural and legal systems sometimes cause problems that make getting paid for the job difficult.
The Solution: Export factoring offers you a complete package to help you develop your overseas business profitably and with confidence.

Export Factoring: provides an immediate injection of cash against the value of your outstanding export invoices in the same way as factoring or invoice discounting. In addition a lender can also remove the hassle of dealing with overseas customers, by chasing and collecting outstanding invoice payment from your overseas customers. They will prepare and send out statements and telephone your overseas customers, always communicating with them in their language. The lender will collect payments for you, and maintain professional and detailed accounts of your transactions. Help in smoothing out the problem of fluctuating exchange rates by offering multi currency facilities is also available along with overseas bank accounts for fast, low cost receipt of payments. 100% credit protection is available on this product.

How Much Does It Cost?
All services are tailored to your business so the fees will depend upon your specific needs. There are two types of fee. The first is the cost of the money you use, which is extremely competitive when compared with other forms of finance. The second is a service fee.

Contact Reservoir Finance on 0800 043 3469 to see how we can help your cash flow.