Close Brothers – Invoice Finance
Close Brothers Invoice Finance is part of Close Brothers Group plc, a leading UK merchant banking group. The group is underpinned by traditional values, including a responsible and ethical approach to lending. Unlike other traditional forms of finance, our portfolio of products is designed to provide stability for your business without restricting change and growth. In fact, our funding adapts in line with your business, which is why Close Brothers Invoice Finance don’t consider themselves just a financial provider, but a long-term business partner.
What is Invoice Finance?
Invoice finance is a smart way to fund your business. It provides you with a steady cash flow injection by releasing the capital locked up in unpaid invoices. Close brothers will pay up to 90% of the value of your invoices the moment they are raised, then once the payment has been settled, you will receive the balance minus a small fee. Unlike a traditional overdraft or loan, this type of funding grows in line with the business turnover and works as a flexible solution to regulate your cash flow. Your ability to access funds increases relative to the value of your outstanding invoices.
Close Brothers offers a variety of Invoice Finance products that covers Close Brothers Invoice Factoring, Invoice Discounting, and Asset-Based Lending. Their solutions provide funding to assist with daily expenses, business expansion, and facilitating growth. Close Brothers has a team of industry experts that are able to understand your business, and tailor a solution to achieve your business goals.
Some of the features and benefits of Close Brothers’ invoice finance.
- Release up to 90% of your invoice values
- Unlock capital lock up in invoices
- A small fee is deducted once the invoice is paid
- Invoice factoring
- Invoice discounting
- Provides services to a range of sectors including manufacturing, engineering, recruitment and healthcare
- Most suited to businesses with 30 day plus payment terms
- Funding is available to businesses with over £500,000 annual turnover
Close Brothers Group of businesses are all within the finance sector and they state that their business is underpinned by traditional values and ethical approach to lending. They are ranked one of highest rated banks in the UK based on Moody’s bank ratings.
They offer a range of invoice financing services which include invoice factoring, invoice discounting and asset-based lending to support businesses to unlock the capital that is tied up in their sales invoices and assets.
Invoice Factoring from Close Brothers
An alternative solution to traditional types of business finance. It eases strain on your business by releasing funds from your unpaid invoices, while an expert credit management team look after the collection of payments on your behalf.
- Factoring is the ideal solution for businesses looking to save time chasing payments.
- It releases up to 90% of the value of your unpaid invoices the moment you issue them to your customers.
- You will have the full support of a dedicated relationship manager and access to your own online account to enable you to view your facility whenever you need to.
- A discreet and friendly credit management team will collect payments on your behalf giving you more time to focus on the day-to-day running of your business.
Is it suitable for my business?
✔ You have a minimum turnover of £500k p.a.
✔ You provide goods and/or services to other businesses.
✔ You would be interested in financing all of your invoices not just a few.
What are the advantages of Invoice Factoring?
- Quick access to working capital
- Maintain customer relationships by allowing our friendly, expert team to collect payments.
- Save time chasing late payments
- Eliminate risk from customer insolvency with bad debt protection
Close Brothers Invoice Factoring Costs and Fees
Close Brothers have transparent fees and costs that vary depending on factors such as your business size, value of outstanding invoices, and the time it takes for your customers to pay their invoices. Typically, Close Brothers charges a service fee ranging from 0.5% to 2%, and a discount rate of 2.5% to 3.5% over LIBOR, for businesses using an Invoice Factoring facility between £500,000 and £5 million.
Your service fee is included in the total administration charge, which covers the total cost of running your Invoice Factoring facility, as well as credit control and optional bad debt protection (which we will cover later). The discount rate is just like a bank overdraft, and is charged as a percentage over the LIBOR against your drawn funds. It occurs at the end of every month, and stops once your customer settles their invoice with Close Brothers.
What are the differences between Factoring and Invoice Discounting?
One of the main differences between invoice factoring and invoice discounting is that with factoring we would manage your sales ledger, credit control and collect payments from your customers on your behalf. This would allow you to save time chasing payments and help you focus on the day to day running of your business. If you would prefer to maintain control over the collection of payments have a look at our invoice discounting offering. Both approaches allow you to release the funds from your unpaid invoices on the same day that you raise them.
Release funds from your unpaid invoices the moment they are raised, while maintaining control over the collection of payments this is how Invoice Discounting works.
- Invoice discounting is an alternative solution to traditional types of business finance.
- It provides instant access to cash tied up in outstanding invoices.
- It adapts with businesses as they change and grow, making it much more flexible than an overdraft or loan.
- You maintain control over the collection of payments, making the facility entirely confidential.
Invoice Discounting is it suitable for my business?
✔ Your invoices are B2B.
✔ Your business has a minimum turnover of £500k p.a.
✔ You would be interested in financing all of your invoices not just a few.
What are the advantages of Invoice Discounting?
Our confidential invoice discounting facility enables you to maintain control over the collection of payments, meaning that your clients won’t know that you are using our service.
- Cash flow
Gain instant access to cash tied up in your outstanding invoices. The cash you can access grows as your sales and invoice values increase. Slow payments won’t limit your business growth.
- Fast funding
Close Brothers Invoice Finance award-winning software, IDeal™, allows you to access up to 90% of your invoice value the instant you raise them, from anywhere in the world 24/7.
- Save time
Eliminate paperwork and laborious month-end reconciliations. IDeal™ automatically reconciles invoice payments, this means no duplication and no errors.
- Personal service
Whether you prefer face-to-face meetings or regular catch-ups by phone or email, Close brother Client Managers are here for you and will proactively support your business.
Operate secure in the knowledge that you are covered should your customers get into financial difficulty with their optional bad debt protection service.
Close Brothers Invoice Finance Customer Support
Close Brothers offers telephone, email, and online chat support during regular business hours. They also have local offices in the UK, Ireland, and Germany where you can arrange a face-to-face meeting with an adviser. In the UK, they are located in East Sussex, Manchester, Bristol, Birmingham, Glasgow, and London.
As a client, you’ll also have access to a dedicated Relationship Manager, who will help you understand your business needs and get the most out of your Invoice Finance facility. You can set-up physical meetings with them, or simply keep in touch regularly over the phone or email.
Close Brothers Invoice Finance Review
A review for Close brothers Invoice Finance summed this funder up very highly. Close Brothers is one of the top merchant banking groups in the UK, and have offices throughout the UK, Ireland, and Germany. Their status as a FTSE 250 company means that they have the expertise and resources to fund your business as it grows over time. Clients remain highly satisfied with Close Brothers’ straightforward, hassle-free service, and on average report spending over 5 years with them.
Close Brothers are remarkably transparent with their costs and contracts, with an easy to use Invoice Finance calculator that allows you to estimate your potential funding. Their SME-friendly solutions help you achieve a range of goals including covering daily expenses, business expansion, and restructuring.
This lender tends to lean toward established business with a turnover of £500,00 plus per year and without any adverse credit.
Why Should You Use Close Brothers Invoice Finance?
Close Brothers are Invoice Finance experts with 50 years of experience, which enables them to help you find the right funding solution. They take into account factors beyond superficial indicators, and make decisions on a case-by-case basis. Close Brothers aims to understand your business and funding needs, in order to offer a suitable tailored solution. They are also industry experts in multiple sectors including manufacturing, engineering, recruitment, and healthcare.
Close Brothers offers you the resources of a FTSE 250 company and the flexible service of an independent provider. Their local offices throughout the UK make them highly accessible, since you can easily arrange an in-person meeting with a Relationship Manager to advise on your funding needs.