Touch Financial | Invoice Finance and Invoice Factoring
Touch Financial LTD is responsible for around £60m in funding for businesses each year. It brokers transactions between businesses and financiers, and has helped around 1000 SMEs. Touch Financial specialises in invoice factoring and invoice discounting. Touch Financial is broker which was established in 2008.
How does invoice finance work? Video by Touch Financial
Touch Financial describes the process of invoice finance and the types of product they can offer, including factoring and discounting.
Touch Financial – Benefits
- Introduction service to over 10 lenders
- 4 years experience in invoice finance and regulated by the Financial Conduct Authority (FRN: 727220)
- Moneyfacts winner for best asset backed broker and invoice finance broker
Touch Financial offers two types of invoice finance:
This is the more common type of invoice finance, which involves receiving a pre-arranged percentage of an invoice you’ve raised to a customer, from a lender. The customer then pays the lender directly, but this can be done confidentially under your businesses name.
Similar to invoice factoring, invoice discounting actually allows you to receive up to 100%, straight away from a lender. It’s normally a confidential process. Upon repayment, you will then be forwarded the remaining value of the invoice that you were not provided with in the first instance, less the prearranged fees.
Touch Financial Services is ideal for customers seeking £50k – £1m, with over £100k turnover per year.
The company handles invoice discounting and invoice factoring, however, it specialises in the following niches:
Touch Financial do not charge clients directly as they simply broker the deals with the top banks, however, the following are fees that can be incurred for invoice finance:
- Discount Charges. This is essentially the interest rate charge and are expressed as percentage over the base rate (normally LIBOR). It’s calculated on a daily basis.
- Factoring Service Fee. This is calculated as a percentage of turnover of the company.
- Minimum Service Fee. Some lenders charge a minimum fee to do business with them at the first instance.
- Re-factoring Charge. This re-factoring charge is implemented if the invoices are not paid after around 3 months.
- Set Up Fee. Some lenders charge for administration costs associated with putting together the factoring arrangement.
- Survey Fee. Some lenders charge to do due diligence to assess the risk and quality of the seller and buyers involved in the transaction.
- Termination Fee. If factoring arrangements end earlier than initially agreed, a company may incur extra termination charges.
I will say that I was initially sceptical about using a broker, but Mike Cass at Touch immediately showed his exceptional knowledge of the market and what I could expect to happen next, and predicted who would contact me, what would happen next and prepared me with a list of information I should be prepared to provide.
The whole subject of invoice finance is pretty complex, and a broker like Touch financial is positioned well to help to guide a non-technical novice through to conclusion.
Sure enough, the predictions about the offers and process were very accurate and after providing enough information and sitting a few meetings with potential providers, I had a series of quite different offers on the table.
Mike helped me to narrow down the field to 2 good offers, gave me very good advice to negotiate a good price from our preferred provider, which considering a company of our size, I feel the deal we got we could not have obtained without Mike’s advice and help.
I paid no fee to Touch for their support and help, which involved all in all a bit of work from them and while I believe they earned a commission for the deal done in the end, this is most definitely not apparent in any reduction in competitiveness of the price I ultimately obtained, which even Mike commented was one of the better deals they had helped to broker.
I am thoroughly satisfied with the help I obtained. It sets my business up for growth and at an affordable price which I know is market leading. I do not know how I would have navigated to the final outcome without their help. Probably expensively and with a lot more of my time spent.
I will definitely be speaking to these guys again when I come up to thinking about comparing the market again.
So thanks. I suspect we as a company will be stronger, and better off to the tune of thousands of pounds through using Touch Financial to help us to broker our deal.
This probably sounds like a planted glowing review, but I assure you it is not. I am happy to provide any referral information as needed. One good turn deserves another.
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