Below you will find a list of the most frequently asked questions about our services whether you are a business owner, accountant, lender or otherwise.
Hopefully, we have covered all the questions you would have wanted answered, but for anything else you may want to enquire about, please fill in the contact form or email info@assetinvoice.com
About Us
Who is Asset Invoice?
Established in 2018, AssestInvoice aims to be the UK’s smartest asset finance brokerage specialising in invoice finance.
Who do you act for?
We act on behalf of ‘you’ – our customer at all times – and we specialise in Small and Medium sized Enterprises (SMEs)
What is your role?
Our main role is to introduce you to a number of invoice finance providers on our approved panel who we believe have the appetite and the ability to offer you a facility. Lenders in this domain have many requirements, for example their appetite to risk, and our role is match-making you to the best provider.
Although we do specialise in Invoice Finance, we may also be able to help you consider certain alternative source of funding, such as government grants and R&D tax credits.
What qualifications do you have?
We have a policy of ensuring that all our Consultants have passed (at the very least) the foundation level exams awarded via UK Finance. For more information about UK Finance please click here www.ukfinance.org.uk.
In addition to this we also have our own in house training programme ensuring our Consultants are trained to handle customer enquiries.
Are you part of a group?
Yes. AssetInvoice is a trading name of Cutting Edge Analysis Limited which provides a wide range of other services to small businesses. For more information click here Cutting Edge Analysis.
Are you independent / impartial?
Yes, AssetInvoice is independent and impartial. It has several lenders on its approved panel and we are always looking to add more. They represent a significant proportion of the invoice finance marketplace which allows us to recommend the most suitable lender for you. There is no hard sell and we are happy for you to compare our offer against offers from other lenders you may have sourced yourself or through other brokers.
What makes AssetInvoice different to other invoice finance brokers?
We are constantly striving to refine our systems and procedures to further improve our customer’s journey. We intend to become the largest broker for the SME segment, by growing the market, rather than churning it.
We can help you to compare offers you have received and give our recommendations on the right facility for you as well help negotiate terms with lender.
What are your Terms of Business?
Please click here for full details of our Terms of Business.
About Invoice Finance
Why do you recommend Invoice Finance as a source of finance?
Invoice Finance is now recognised in certain situations, as more effective than an expensive bank overdraft or loan. It helps business growth without the need for physical assets to act as underpinning security. This often means that Invoice Finance – in the right circumstances and with the right funding partner – could provide a larger cash injection for a business compared to a more ‘traditional’ funding line such as a bank overdraft.
Why does Invoice Finance have a poor reputation?
…and why are Invoice Finance companies sometimes referred to as “the lender of last resort”?
This is a common misconception. Invoice Finance was originally delivered via the big banks and never as a mainstream commercial service. The poor deployment of the product, coupled with a lack of understanding of its proper use, meant that it was often only recommended once all other funding options had been explored. Businesses were often recommended Invoice Finance even when it was wholly unsuitable to the product, or even when they were already in financial difficulties.
How many Invoice Financing providers are there in the market?
There are dozens of banks and independent providers of invoice finance. This number is constantly growing and we are happy to open a dialogue with any potential lenders.
Do you deal with all the Invoice Finance providers?
We have an understanding of a significant proportion of the Invoice Financiers in the market so we can offer our customers a wide choice. We select our panel of lenders carefully and value the importance of the Broker/ lender relationship. New lenders are coming to the market on a regular basis, and as such we constantly review and refresh our panel as well as monitoring the service levels of our longer-term partners to ensure they are meeting our customers’ needs.
Our Lenders
Are the lenders on your panel regulated?
Not all, but a significant proportion are regulated by the Financial Conduct Authority (“FCA”) and / or members of UK Finance.
UK Finance members are subject to maintaining a satisfactory code of conduct when dealing with their Clients. The Code of Conduct is subject to the Independent Complaints procedure which is monitored by the Professional Standards Council, the Council is charged with keeping the code up to date and applying sanctions on UK Finance members who do not meet the minimum standards required.
For more information please visit www.ukfinance.org.uk/membership/ and www.fca.org.uk/register.
We would however always recommend before proceeding with any lender that you:
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carry out your own checks on the lender,
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seek independent professional guidance (for example, your accountant, lawyer or IFA) on the facility being offered,
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ensure you feel completely comfortable before accepting any proposed offer.
How do you know those lenders are the best for me?
We know because we have spent a considerable amount of time and resources in developing our own in-house algorithm to enable us to identify which lenders, based on various formulas, fit with your business requirements.
We also meet with a significant proportion of our approved lender panel on a quarterly basis which enables us to stay up-to-date with the latest products and innovations in services. These meetings also help ensure our input data can be regularly reviewed and updated.
Do some lenders provide better service / cheaper options?
Service levels and rates will of course vary across the marketplace, and will often depend on the type of facility that the customer prefers. Some of our customers, for example, will be entirely price driven and require less service assistance from the lender. Others will require the lender to be far more ‘hands on’ and this might be the main driver for them.
Our Service
How do you decide which Invoice Financing product is appropriate for each prospect?
The process is simple. Our consultants are all trained in Invoice Finance and certain related products. Once we have obtained all of the relevant information from you, and they assured you are eligible, they will introduce you to the most relevant lender. Please provide accurate information, as this will dictate the success of the match between you and the most relevant products / suitable lender.
Why is it so important to select the right invoice finance provider?
Invoice finance is not a ‘one size fits all’ product. Over time, lenders have evolved different products, often to match the demands of different industries. Our particular skill is in constantly monitoring and assessing certain new products, and in matching those products (and by definition the lender) to the business need.
What is your after sales service like?
Once your facility has commenced you will remain in our system to ensure that any problems you experience are dealt with (sometimes with our involvement). From time to time we might also be able to assist with other funding or business requirements you might have.
What happens if I want to leave the lender? Do I get penalised / am I tied in to a lengthy contract?
You will enter into a formal agreement with a lender detailing what happens if you want to leave so depending on the terms of the contract, there could be an early leaving penalty or a cancellation fee may apply.
Some lenders offer monthly rolling contracts reducing any termination penalty if you want to exit the agreement, however, they may applies fees elsewhere, or overall charge more for the facility.
What happens if I want to switch from one lender to another?
A significant proportion of our lenders are members of ABFA and there is a seamless inter-factor transfer process that these lenders adhere to. That said, there are typically transfer fees that apply when businesses move from one lenders der to another. We can seek to identify these early to ensure you can make informed decisions rather than finding out about any transfer penalties late in the day.
Do you always act for me rather than the lender?
Yes. We believe in having a strong relationship with the members of our lending panel, but we will not act for any of the lenders.
Costs
How do you get paid?
AssetInvoice work on a commission basis with lenders which is only paid once a facility has been provided. AssetInvoice is being paid a commission and full details are available on request.
Can I get a better deal if I approach the lenders on your panel myself?
All the lenders on our panel however know that any businesses we introduce to them will likely receive quotes from more than one lender. This encourages them to offer market competitive rates for equally competitive service levels. They also accept that we will only be sending them well-matched leads and potential clients, reducing the amount of administrative burden on them.
Are there hidden costs from the lenders?
Not as a rule. As with any finance facility, however, there can be additional costs that inflate the headline rates, which sometimes makes ‘like for like’ comparisons more challenging. Lenders on our panel should be transparent about their fee structure, although we would encourage you to ask for a full breakdown of any additional charges. Further, a number of the lenders we work with also have fixed cost facilities that can help for budgeting purposes and reduce fees.
What are the average advance rates?
The average advance rates are usually between 80-95%. Advance rates do depend, however, on the individual circumstances and risk profile of the business and the sector it operates in. For example, in sectors such as construction, a business owner or contractor may only enjoy a 60-70% advance.
Complaints
Who do I complain to if I am not happy?
Should you have any problems with our service, our Director, Kevin Prescott will be very pleased to speak to you directly – kevin.prescott@assestinvoice.com.