FACTORING GUIDE

Assignment of Invoices / Credit Note Schedules
It is important that you affix the assignment sticker (example below) to all invoices sent to your customers; this notice must also be fixed to any copy invoices which are subsequently issued.

We would recommend that you have this wording clearly pre-printed on your invoices where possible.

If you intend to send invoice schedules to us by post and require payment against those invoices on the following working day then we recommend you consider the use of special delivery postal services to ensure timely delivery. Regrettably, we are unable to accept schedule assignments by fax or responsibility for postal delays or other delays which are beyond our control.

New "first time" Customers
If your invoice schedule includes new “first time” customers who have not previously been notified to us, please ensure that you provide the full business name, address and telephone number. If the debtor is a sole trader or partnership, please also provide the full names and address of the proprietors.

Customers who pay "direct"
Where you have customers who make payments via the BACS, please advise them immediately of the following new bank details to ensure that future payments are sent to the correct account. You should also ensure that when payments are made in this way, you fax to us the corresponding remittance advice in order that cash can be correctly allocated.

Lloyds TSB plc. High Street, Guildford
Sort Code 30-93-74
Account Number 03793463

One of the most common problems encountered in the early part of any Factoring relationship is that customers continue to pay funds direct into your bank account. Should this occur, you will need to ensure that you notify us and arrange for these funds to be transferred onto us immediately. Any delay in this procedure might lead to a reduction of the funds available to you and could be construed as a breach of your agreement with us.

Cheques received from your customers
Any cheques received from your customers must be posted directly onto us for banking, even if they are made payable to your company. It is helpful for allocation purposes if you can include the customers’ remittance advice, marking your client number on the reverse of the cheque.

Customer Statements
Each of your customers will receive a monthly statement which will include details of all invoices issued for the period. Under certain circumstances (for example where you have requested to perform the credit control function yourself) it is possible to suppress these statements by mutual consent.

Client Statement
We will provide you with a detailed statement of your account each month to include all movements and charges for the period.

Payment Requests
If you have the benefit of our on-line viewing facility, then day to day availability may be accessed via your secure client access screen on our web site at www.smeif.com.

If you would like to draw down funds, please telephone our Guildford office on 01483 531100 to request your availability and draw-down as required. In order to action your requests on the same day, we require your instructions before 1.00pm. Payment of available funds may be transmitted by either BACS or CHAPS and you should advise us which method you require at the time of your call.

BACS payments will be in your bank account 2 working days following the day of your request.

Payments requested by CHAPS will be in you bank account the same day as your request

Disapprovals
Disapproved invoices are excluded from the availability calculation and funds cannot be drawn against them. These are the main reasons why invoices may be disapproved:

• The invoice is disputed or in query with the customer (e.g. non delivery or faulty goods)
• The customer is not in a position to pay and the debt is deemed uncollectible
• The invoice is “aged” and has remained unpaid beyond its recourse period (typically 90 days from the date on which it was raised)
• The customer’s balance exceeds the credit limit or concentration limit agreed by SME Invoice Finance
• The invoice is in a category which may have been made specifically ineligible for funding under the agreement

Credit Limits
We will normally apply a “blanket” credit limit to the whole of your ledger unless adverse credit information on specific debtors is notified to us. This blanket limit will be agreed by your account manager at commencement of your facility. Where individual debtors require larger credit limits, specific limits may be agreed for these customers following more detailed individual analysis and after reference to one or more of the major credit reference agencies

Whilst Credit Limits are often used as a guide as to the credit worthiness of your debtors, no representation or warranty (express or implied) is given on the part of SME Invoice Finance Ltd as to the accuracy of this information. Limits are agreed in good faith and on the basis of information available to us at that time. However, it should be remembered that individual circumstances are often subject to change and may be affected by a variety of issues.

There are a variety of sources which we may be able to make available to you to help you evaluate your customer’s credit worthiness. Please feel free to request further information from your account manager or visit the “Clients” section of our web site.

Problems? – we want to help!
We recognise that business life may be full of ups and downs and is rarely likely to follow the smoothest path. Our desire to help is genuine and if there’s a problem that we can help you solve, we’d be delighted to try.

We also value your feedback so if you want to let us know what we do well or maybe what we could do even better, please feel free to telephone any of the team or our Directors if you feel the need!