- How is it financed? Cash 101 is backed by a
network of private individuals who want to help small businesses to improve
their cash flow.
- Can any invoice be discounted? Yes. As long as
the customer agrees that the goods or services have been provided any invoice
may be offered for discounting.
- How much does it cost? For invoices paid promptly
there is a standard charge of up to 4% of the invoice total. If payment
stretches out beyond 15 days, the charge increases to a
maximum of 6%. If it goes beyond 30 days, the charge rises to 8% and
for payments made after 45 days it will be 10%. After 60 days the maximum payable is 12%. In
addition there may be a small administration charge to cover the credit
checking of your customer.
- How quickly will I get the money? Immediately.
When your facility is agreed, all the necessary paperwork is put in place. You
simply send us a copy of the invoice, a signed delivery note which contains
our simple acknowledgement of assignment clause and we will make payment
usually by BACS the same day.
- Who is responsible for collecting payment? You,
the supplier. If we haven't received payment within 90 days we will ask
you to repay the advance or supply another in its place. As an
additional service we can provide a collection service. See Cashflow
Protector
for more information
- Will my customer know that I have assigned his invoice? Yes. You will be asked to include a notice of assignment on the
invoice and delivery note. If the customer already has the invoice, you can let him know that you have assigned the invoice using
a simple assignment letter.
- Isn't this just factoring? Not exactly. Most
factoring companies require a minimum turnover and insist that all invoices
are discounted. With Cash 101 you choose which invoices you want to discount
- Is there any minimum on how many invoices I can discount? No. This is an "as needed" facility to help you manage cash flow
spikes. There is NO long term commitment and NO monthly minimum.
- Does it matter what I use the cash for? No. You
can use it as you would your normal working capital e.g. to get quantity
discounts from suppliers, reduce your overdraft, meet payroll commitments,
settle your VAT or simply pay off your creditors.
- Is the facility restricted to any business sectors? No. Cash 101 invoice discounting is available to virtually any
business in any sector.
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