Unlock your potential

and help your business grow.

FAQs

  1. Why should I use a specialist broker for my business?
    1. As an independent specialist invoice finance broker Touchstone can talk to a range of invoice finance providers on your behalf.
    2. We can save you time and money in finding the best fit invoice factoring facility for your business.
    3. We offer a FREE service whether it is to review your existing invoice factoring facility or to help your business find the most appropriate invoice factoring facility tailored to your business, if you are new to invoice factoring.
    4. Although experts in our field at Touchstone we offer an old-fashioned approach, looking to understand you and your business; to us you are more than just a number.
    5. We never assume and always look to make sure whether invoice factoring is a right fit for your business, and will look at alternatives you may not have considered.
  2. Why should I use an NACFB Broker?

Brokers who are members of the National Association of Commercial Finance Brokers (NACFB) all adhere to an industry recognized Code of Practice, so if you use a broker with the NACFB logo, you know you should be getting a good service. At Touchstone we are also FCA registered and totally committed to adherence to FCA guidelines and principles and aim to bring these and NACFB guidelines into how and what we do on a daily basis.

  1. Why should I use a specialist factoring broker?

In simple terms, to make sure that the factoring lender you go with is right for your business, and can offer the right price and right service. At Touchstone we talk to you about your requirements, both now and for future, to find a bespoke solution for your business.

  1. Why should I not just talk to my IFA or Accountant?

We at Touchstone do not offer our services as part of an overall package, the main core of our business being something else. We are experts and specialists in our field and can help you access the right provider fast. Knowing which invoice factoring provider is the right fit for your business is key to what we do and focussing just on this area helps us to know what invoice factoring lenders are offering at any one time, and directing our clients to the best fit option, right first time.

  1. Why do you only offer Invoice Finance?

Whilst there are a lot of commercial brokers offering a full range of commercial finance options, we at Touchstone believe that being specialists in a niche area allows us to understand this better, and focus on helping clients get the right option first time.

  1. What other types of commercial finance can you arrange?

Although we do not directly offer other forms of commercial finance, we know what options there are and work closely with another NACFB Broker who is able to offer all these other commercial finance options. We value this relationship and know they work to the same standards as we do so are happy to make an introduction here if required.

  1. What is the difference between a Broker and a Packager?

Generally speaking whilst a packager will put cases to a small panel of lenders, a broker will look at you and your business and recommend an option/options from across the wide range of invoice factoring providers, taking into account not just pricing, but service, your growth plans, notice periods etc. At Touchstone we regard it as very important to understand both you and your business in order to try to find a bespoke solution suited to where your business is now, but also where it looks to grow in future.

  1. How much do you charge?

We do not charge a fee to our clients, as we earn commission from whichever invoice factoring lender we place a piece of business with. Depending upon the complexity, distance and work involved we may look to charge a fee on occasion but this is only done in consultation with the client and advised and agreed in writing.

  1. Do you just put business to whoever pays you the most commission?

Absolutely not! We always aim to find the right fit for a client and this is based on you and your businesses requirements not how much commission we may earn. We will look to offer a range of options to any client, and leave them to decide which of these they may wish to take forwards. Broadly, however, most invoice factoring lenders pay commission at the same rate so it is therefore more important for Touchstone to find the right option for the customer.

  1. Do you have PI Cover?

Yes, as with all NACFB Brokers we have PI Cover in place.

  1. 11. Are you registered for Data Protection?

Yes, and we regard and treat all client information as of the utmost importance.

  1. Do you have a Consumer Credit Licence?

Yes, and an Interim Permission from the Financial Conduct Authority. The transfer over from the OFT to the Financial Conduct Authority is being done on a phased basis so we hope to have full authorisation in due course.

  1. What is invoice factoring?

Invoice factoring is a type of finance that can help a business improve its cash flow, allowing your business to meet day to day bills and expenses without having to wait for your invoices to be paid. Your business sells a service or product and invoices your customer, but instead of waiting 30 to 60 days or longer for this to be paid you can ‘sell’ this to a factoring lender and receive up to 90% of the value of your invoice within 24 hours. The factoring lender then follows up the debt and when this is paid sends your business the remainder, less their fees.

  1. Are all factoring lenders the same?

No they are not! There are many lenders, and these have different levels of experience, some specialising in certain types and sizes of business, and this means that some might be a better fit for your business than others.

  1. How much does invoice factoring cost?

There are 2 main elements, a service fee usually a % of the total volume of invoices financed, and an interest charge based on the amount lent. There are also a range of possible additional costs and this is where a specialist broker can help, to make sure you are aware of these, and to help reduce these where possible.

  1. What is the average funding % my business can get?

Generally up to 90% of the value of your invoices, although this may be less in certain sectors. We will always aim to give you a guide on this when we first discuss your requirements with you.

  1. I prefer to use an overdraft or loan, why should I use invoice finance?

Traditionally these have been the options many businesses have both looked at and used. With changes in the Finance industry over the past 5/6 years access to these have become more challenging, in addition to often needing to provide security and in the case of overdrafts with annual renewal fees so costly. Invoice factoring gives you access to funding which is flexible and grows with your business.

  1. What sort of business use invoice factoring?

Factoring can be used by most businesses, so long as your customers are other businesses. There are certain businesses which tend to make use of factoring in particular those involved in haulage, manufacturing, recruitment, wholesale and logistics, and construction but if in doubt just pick the phone up and talk to us at Touchstone.

  1. How quickly can invoice factoring be put in place?

We look to work quickly with all clients, within your timescales, but this can be done within a matter of days. Just give us a call and we can let you know whether we can help or not, but if we can once we have found the right solution for you, the money is usually in your account within 24 hours.

  1. I bank with a High Street Bank; can I use an independent invoice factoring company?

Yes you can. The invoice finance market continues to grow and there is no need for you to have your invoice finance facility with your day to day banker. In many cases an independent invoice factoring lender can offer a package which is more suited to your business.

  1. Isn’t factoring only used by failing businesses?

Not at all! Historically, this was often believed to be the case but today invoice factoring is a much more mainstream option and is used by many large corporate businesses to fund growth and expansion plans. At Touchstone we have helped both new and existing businesses, some with cash flow problems, some large businesses looking to fund new orders and growth plans, some looking to change from one invoice factoring provider to another. Just give us a call and we can tell you quickly whether we can help you.

  1. Why is invoice factoring more expensive than invoice discounting?

In general terms, because you are out-sourcing your credit control in invoice factoring. The invoice finance lender chases and collects the debt, whereas with invoice discounting you continue to chase up and collect all debts.

  1. What level of turnover do I need to have?

Whilst many invoice factoring lenders prefer to deal with established businesses, there are some who are happy to look at new businesses. Touchstone knows those invoice factoring funders who are happy to look at offering facilities for new businesses, so just give us a call.

  1. What information will I need to provide?

We can help you with this and tell you what information will be needed by each invoice factoring lender but you will need to provide some financial information about the business. Usually this will include details of debtors and creditors, your accounts and in some cases up to date management figures but this also depends on individual circumstances so we always look to understand you and your business so we can advise you on this better.

  1. Do I need a clean credit history?

Not necessarily! Invoice finance companies are interested in the business and your customers although if there have been credit issues in the past it is always advisable to be honest about these. Touchstone can advise who best to approach depending on what credit issues you or your business may have had in the past.

  1. Will I have to put my house up for security?

No, it is not usual for this to be required. This is perhaps one of the reasons why invoice factoring is an increasingly attractive option for many businesses, as an alternative to bank overdrafts and loans which may require this sort of security being put in place.

  1. Will I have to provide a Personal Guarantee?

If you are a Limited Company then yes you may have to provide a Personal Guarantee, although this may be limited in amount. Touchstone can tell you whether this is likely to be the case early on, but there are now ‘spot’ factoring options where personal guarantees are not a requirement.

  1. How easy is it to transfer from one factoring company to another?

There is a common belief that this is timely and costly but it has never been easier, especially with our help. With more invoice finance providers in the market it pays to review your current invoice finance package at least annually to make sure that who you are using still offers the right price and right service.

  1. I am interested in trading abroad – can you help?

Definitely, yes! At Touchstone we have invoice factoring providers who are experienced in helping businesses involved in import and export, and this is an increasing area of interest for many businesses. It is important to make sure that the invoice factoring lender has the experience and expertise to help your business wherever you are looking to trade with and we can help find the right option here for you.

  1. Can I fund construction/contractual debt?

Traditionally this has been a difficult area but there are now invoice factoring lenders who are willing to look at this area, so please feel free to call and discuss your specific situation with us.

  1. What is spot factoring?

Unlike full invoice factoring where you have to ‘sell’ all your invoices to a factoring lender there are now factoring lenders who buy single invoices. You can therefore pick and choose which invoices you ‘sell’, and can use these as and when required. Touchstone works closely with a number of these so a quick phone call can help answer any questions you might have and can see if this is the right option for your business.

Contact Us

For an independent, personal and bespoke solution to all your commercial finance requirements, please contact us by post, telephone, email or by completing and submitting the enquiry form below:

Name:

Telephone:

Email:

How can we help?

Enter the code:

captcha

NACFB Helping Fund UK Businesses