Berkeley provides clients with the ability to ensure improved cash flow with advances up to 85% of the sales invoice value against credit insured customers, on single or multiple invoices. This flexible facility can be utilised to fund the entire sales ledger or just a single customer invoice including FOB sale and Export debtors.
I know we still await our shipment, but I just wanted to thank you and Steve for your prompt, efficient and extremely helpful service thus far.
- Fashion Brand - London
Free Insurance Cover
Clients benefit from 90% bad debt credit insurance cover at no extra cost.
Release of Funds
Utilising invoicing financing Clients can release up to 85% of the invoice value immediately.
Prompt Collection
Berkeley’s team of account managers work to ensure prompt collection.
Final Payment
The remaining 15% of invoice, less charges are paid on receipt of cleared funds from the end customer.
Greater flexibility
Selective Invoice financing can offer greater flexibility than factoring, which typically involves the financing of a complete ledger. The major differences are shown in the following table:
Prerequisits to an invoice finance transaction:
- Berkeley will register a full fixed and floating Debenture on the Client.
- Credit Insurance is obtained on the End Customer. This will protect outstanding monies owed to Berkeley in case of End Customer insolvency.
- Customer is formally notified of new financing agreements in place between Berkeley and Client and the legal assignment of all debts and payments to Berkeley.
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Invoice Financing
Factoring
Requires the entire sales ledger to be financed
No
Yes
May complicate pre-existing financial arrangements
No
Yes
Charges annual fees
No
Yes
May demand a minimum turnover to be achieved
No
Yes
May apply debtor concentration thereby reducing
% credit availabilityNo
Yes
Transaction Flow
1. Client delivers goods to End Customer.
2. Client raises Invoice on End Customer with assignment notification. A full set of documents, Copy of invoice, delivery note and purchase order from End Customer sent to Berkeley.
3. Advance payment made to Client by Berkeley, typically 85% of the sales (invoice) value to End Customer.
4. Berkeley will be in charge of the credit control and collect the outstanding invoice (debt) from End Customer.
5. Berkeley will make Final payment to Client, which comprises the 15% balance less interest and charges accrued.
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