Is Your Invoice Finance Facility Far From Ideal?

Invoice Finance Reduced Costs

Invoice Finance – Reduced Costs:

At Funding Solutions we specialise in helping businesses reduce their invoice finance costs and remove any frustrating restrictions.

The case study below demonstrates how we obtained terms that would reduce costs for a Close Brothers Invoice Finance client by at least 54%. We also offered a facility with no additional costs at all.

We were approached by a business that was using Close Brothers Invoice Finance as a provider of invoice finance. The business had a turnover of £3.6m + VAT and for the purpose of the comparison we assumed an average borrowing of £300,000.

We went to market and obtained terms that compared as follows:

 Close BrothersFunding Solutions Option
Service Fee0.65%£833 p.m. flat fee
Discount Fee2.5% over base subject to a minimum of 4%2.6% over bank base rate
Monthly Minimums£1,250£833

The Close Brothers facility was expensive and sadly they had a minimum discounting fee of 4% in the agreement. This meant that the client had not benefitted from the record low base rates. Had they been paying 2.50% over bank base rate the discounting fee would have been 2.75% in total. The client was paying 4% so in effect 3.75% over base rate rather than the expected 2.50% over base rate.

In terms of actual costs the facilities compared as follows:

 Close BrothersFunding Solutions Option
Service Fee£28,080£10,000
Discounting Fee£12,000£8,550
Saving ££21,530
Saving %54%

In short we offered the following benefits:

– at least a 54% cost reduction which will add £21,530 to bottom line profits.

– no additional charges

– no minimum discounting fee

What can we achieve for your business?

If you want to improve upon your facility get in touch on 0845 251 4040 or