Times are tough for many companies of all shapes and sizes across the globe. Through forced closures and consumer demand halting many productions, businesses have seen a new level of adapting and sheer fighting for survival.
At GRENKE we’ve been continuing to support our customers to get through these unprecedented times, our solutions include invoice financing (factoring). Whatever the reason you need to turn to invoice financing, there’s no faster way to get immediate payment of your invoices within 24 hours.
Established in 1978, operating in over 33 countries, we’ve financed nearly 3.5 billion pounds of new business in 2019.
So, how does it all work?
Here’s a scenario to bring invoice financing to life.
A signage company have seen an influx of demand with safety signage boosting business for their team of three. With £5,000 outstanding invoices from customers, no dedicated finance team to chase and a need for instant capital – they got in touch with GRENKE.
For this scenario, GRENKE would advance 90% of the invoice value within 24hrs and then continue to wait for payment from their client (debtor).
Step 1 - £5,000 invoice(s) submitted to GRENKE by the signage company
Step 2 - £4,500 advanced to the signage company (90%)
GRENKE then waits until the due date of the invoice(s) submitted, if no payment is made by the signage company’s debtor(s) the collection process kicks in after 7 days.
Step 3 - Payment from client’s debtor(s) to GRENKE of £5,000 within the 30 day payment period
Step 4 – GRENKE then pays the signage company the final 10% minus fees.
Summary of fees*
Total fees to GRENKE = £118
Fixed fee at 2% of invoice value - £100
Variable fee at 0.012% per day of invoice outstanding (e.g. 0.012% x 30 days invoice outstanding) – £18.00
The signage company gets £4,500 after 24 hours, and then the remaining £382 when their debtor pays – in total £4,882.
Need an extra helping hand to release capital in your business? Get in touch today or find out more in our FAQ’s.
*Please note that the rates shown are for illustrative purposes only and will vary based on various factors from client to client.