Turn your unpaid invoices into ready cash.
Provides
Working capital by releasing funds held up in outstanding debtor balances. Security by insuring debts against insolvency both in domestic and export markets.
Benefits
Enables the business to make efficient use of its working capital. The cash freed can be put to use immediately. For example:
- Taking advantage of supplier discounts.
- Negotiating better prices from suppliers by agreeing to shorter credit terms.
- Investment - resources are stretched when acquisitions are considered.
- Expansion - remember the facility grows as the business does.
The business can enhance its export sales by invoicing confidently and securely on open credit where competitors are asking for Letters of Credit or similar. The provision of letters of credit, confirmed bills of exchange or similar by export debtors ties up the customer's working capital, restricting their ability to buy. Secure and early payment from Coface allows the business to trade on open credit within the insured limit, even with the extended terms usually seen in export markets, thus providing competitive advantage.
How
When an invoice is raised to a debtor, notification is made to us and we make an early payment of the invoice to an agreed percentage (usually 80%) by return. When the debtor pays, we pay the balance less our charges. We will purchase invoices outstanding at the beginning of our facility too. The facility is confidential and the business retains its relationship with the customer, collecting the debts as our agent.
Costs
There are two charges. A facility fee and the cost of money. Rates are variable but are competitive with other working capital facilities. Importantly, our rates for export business to OECD countries are the same as for domestic sales.
Optional Extras
Collection services. Coface has a worldwide network of offices able to provide collection in addition to credit insurance worldwide.
Frequently Asked Questions
Q. There are a lot of invoice discounting companies, what makes you different?
A. Our prime strength stems from the fact that we are part of Coface, one of the world’s leading credit management companies. We have an ability and an appetite for export business which is unmatched by our competitors. We treat export sales to OECD countries as if they are to the domestic market. We have access to credit information about businesses across the world at our fingertips and are able to translate that into immediate credit limit decisions. Also, being part of an insurance company means that we have no recourse period for Coface insured debt. Debts stay funded until the customer or we pay.
Q. Is credit insurance with Coface essential?
A. We believe that all prudent businesses will insure their receivables. However, in the right circumstances we do offer facilities to those who do not wish to insure and also to those who insure with a different company.
Q. Does it matter whether there is an assignment of a credit insurance policy or a non recourse agreement with Coface?
A. There is no practical difference in the everyday running of the facility. The best agreement will depend on the needs of the business. Items such as pre-shipment obligations would need to be taken into account as well as any transfer from existing insurer or invoice discounter.
Why wait? Turn your unpaid invoices into ready cash now. Contact us for further information.
