{"id":2175,"date":"2020-05-06T09:48:49","date_gmt":"2020-05-06T08:48:49","guid":{"rendered":"https:\/\/acceleratedpayments.com\/?p=2175"},"modified":"2020-05-06T09:48:51","modified_gmt":"2020-05-06T08:48:51","slug":"invoice-finance-choosing-the-right-provider-when-youre-a-fast-growing-tech-company","status":"publish","type":"post","link":"https:\/\/acceleratedpayments.com\/en_us\/invoice-finance-choosing-the-right-provider-when-youre-a-fast-growing-tech-company\/","title":{"rendered":"Invoice Finance: choosing the right provider when you\u2019re a fast-growing tech company"},"content":{"rendered":"<p>Fast growing businesses can often struggle to raise enough finance to keep up with their demand for working capital.\u00a0The situation,\u00a0sometimes referred to\u00a0as over trading, occurs when a\u00a0company\u00a0is taking on new business faster than it can afford to fund that business.\u00a0It\u2019s a cash flow issue made even worse by late or slowing paying customers. Invoice finance is\u00a0used by many businesses to manage the varying payment terms\u00a0and taking a facility with a lender who understands your business\u00a0and is keen to support you moving forward is invaluable.\u00a0We\u2019ve\u00a0put together a few\u00a0things to be aware of when you\u2019re choosing invoice finance, followed by our product offering at the end so you can benchmark against other invoice finance providers.\u00a0\u00a0And we&#8217;ve included a case study on how one tech company is using invoice financing to great effect to build their business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Flexible Funds&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Some financiers will apply limits to your funding. These include:\u00a0<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<ul class=\"wp-block-list\"><li>concentration limits\u00a0<\/li><li>drawdown limits\u00a0<\/li><li>export debt\u00a0<\/li><li>facility size\u00a0<\/li><li>reserves\u00a0<\/li><li>withholding profit\u00a0<\/li><\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Costs of Funding&nbsp;<\/h2>\n\n\n\n<p>Fees vary between financier\u00a0\u2013 some have up to 34. These may include:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>setup fee\u00a0<\/li><li>service fees\u00a0<\/li><li>insurance\u00a0\u00a0<\/li><li>termination fees\u00a0<\/li><li>refactoring fees\u00a0<\/li><li>interest fees (also check how BOE base rate rises affect)\u00a0<\/li><li>fees associated with reviewing, renewing or increasing your funding\u00a0<\/li><li>administration\u00a0and\u00a0account service fees\u00a0<\/li><li>legal documentation and process fees\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Transparent Terms&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Larger&nbsp;technology&nbsp;businesses who have used or are using a form of invoice finance will be familiar with personal guarantees and lengthier setup processes, typically owing to the complexity of the facility.&nbsp;<\/p>\n\n\n\n<p>If your business is choosing finance for the first time, here are some terms to familiarise yourself with:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>personal guarantee\u00a0<\/li><li>debenture (the name typically given to a security agreement that sets out the terms under which the borrower provides security to a lender.)\u00a0<\/li><li>contract length (ranges from no fixed term to fixed)\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Simple Process&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Process requirements vary&nbsp;between finance provider,&nbsp;it can be on&nbsp;an individual invoice, selective&nbsp;debtor,&nbsp;or whole book basis. Price can be based on the specific risk rating of one of your debtors or your&nbsp;entire ledger.&nbsp;You can choose to remain in control of your credit and collections process or outsource the&nbsp;management&nbsp;to the finance provider.&nbsp;&nbsp;<\/p>\n\n\n\n<p>All financiers will offer demonstrations of their product \/ service. Here are some questions to ask during this phase:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>How does the credit\u00a0checking\u00a0process work?\u00a0<\/li><li>Who issues contracts?\u00a0<\/li><li>Am I covered in the event of a bad debt?\u00a0How is customer service structured? What are they responsible for?\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Accelerated Payments\u00a0<\/h2>\n\n\n\n<p>\u00a0Accelerated Payments offers an <a href=\"https:\/\/acceleratedpayments.com\/en_us\/invoice-finance\/\">Individual Invoice Finance<\/a> service &#8211; you select  which invoices to fund and when. We approve your customer and credit insure the transaction so in case of default you will still receive up to 90% of the value of the invoice. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Flexible Funds:&nbsp;&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>We\u00a0finance on\u00a0an individual invoice\u00a0basis\u00a0so there is no issue with concentration risks or\u00a0drawdown limits (typical invoice amounts from $\/\u20ac\/\u00a315K to 2M).<\/li><li>We\u00a0can\u00a0provide finance against\u00a0export debt\u00a0\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Lending Rates:&nbsp;&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Up to 80% of the value of each outgoing invoice is immediately available as working capital.\u00a0<\/li><li>Accelerated Payments provides the final balance payments when clients settle the invoices\u00a0<\/li><li>Log in to the customer portal for full details of every invoice including a breakdown of all payments, including interest\u00a0<\/li><li>Credit insurance or bad debt protection is provided against all invoices included in the price\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Transparent Terms:&nbsp;&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Accelerated Payments does not require any\u00a0personal guarantees,\u00a0security\u00a0or debentures\u00a0\u00a0<\/li><li>All invoices are financed on an individual basis so there is no\u00a0long term\u00a0contract, you can use the facility as and when you need to\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Simple Process:&nbsp;&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/client.acceleratedpayments.com\/Registration\">Apply<\/a>:\u00a0Simply register online. We\u00a0can\u00a0have you approved within 24 hours.\u00a0<\/li><li>Debtor Approval: We review and approve your customers in advance\u00a0\u00a0<\/li><li>Invoice Approval: Your customer verifies their invoices for payment using\u00a0Accelerated Payments\u2019\u00a0e-invoice platform\u00a0\u00a0<\/li><li>Get Paid: Select invoices for advanced funding and get paid now while your customer pays later\u00a0\u00a0<\/li><li>Settlement: Your customer pays into a designated bank account on due date. This account is in your company\u2019s name\u00a0\u00a0<\/li><\/ul>\n\n\n\n<p>If that feels like a lot to take on board, or\u00a0you are\u00a0interested in <a href=\"https:\/\/acceleratedpayments.com\/en_us\/contact\/\">finding out more,<\/a> our expert team are available to talk you through the options vs your needs. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Case Study:&nbsp;Full Stack Resources&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Toronto\u2019s busy tech scene has a high demand for skilled programmers and other technology personnel.&nbsp;Our client&nbsp;Full Stack Resources&nbsp;successfully&nbsp;spotted and filled a gap in the market when it hit upon an original idea: offering a recruitment service to match skilled developers with vacancies, as well as a software development service that completes contract work for companies. But, as with all successful businesses Full Stack hit an increased working capital requirement: paying&nbsp;its developers directly, and an&nbsp;ever-increasing&nbsp;number of people on its&nbsp;further&nbsp;expanding payroll.&nbsp;&nbsp;<\/p>\n\n\n\n<p><em>&nbsp;\u201cWe had worked with an invoice financing company, but we really needed more visibility and detail than they were providing<\/em><em>, and that\u2019s when we met Accelerated Payments. We immediately saw they had the solution we were looking for.\u201d&nbsp;&#8211; Managing Partner Chris De Sousa<\/em>&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/acceleratedpayments.com\/en_us\/portfolio-item\/full-stack-resources\/\">To read the full story click here\u00a0\u00a0<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Fast growing businesses can often struggle to raise enough finance to keep up with their demand for working capital.\u00a0The situation,\u00a0sometimes referred to\u00a0as over trading, occurs when a\u00a0company\u00a0is taking on new business faster than it can afford to fund that business.\u00a0It\u2019s a cash flow issue made even worse by late or slowing paying customers. Invoice finance [&hellip;]<\/p>","protected":false},"author":93,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29,30],"tags":[35,59,61,60,38,62,58],"class_list":["post-2175","post","type-post","status-publish","format-standard","hentry","category-invoice-finance","category-export-finance","tag-accelerated-payments","tag-concentration-limits","tag-credit-check","tag-debenture","tag-invoice-finance","tag-payment-terms","tag-tech-company"],"acf":[],"_links":{"self":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts\/2175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/users\/93"}],"replies":[{"embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/comments?post=2175"}],"version-history":[{"count":6,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts\/2175\/revisions"}],"predecessor-version":[{"id":2182,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts\/2175\/revisions\/2182"}],"wp:attachment":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/media?parent=2175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/categories?post=2175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/tags?post=2175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}