Q&A: FastTrack Invoice Discounting
ABN AMRO Commercial Finance’s new FastTrack Invoice Discounting service offers rapid access to receivables finance. Vfiles talks to Executive Director Alison Small about the workings of this new facility and how it can support business enterprise
VFILES: What do you mean by ‘FastTrack’ Invoice Discounting?
ALISON SMALL: Essentially, it does exactly what it says on the tin. A business applying for a FastTrack Invoice Discounting facility will meet one of our managers within 48 hours and, if an offer is made, the facility will be on-stream within five working days.
VFILES: When will the company know if its application has been successful?
AS:. At the initial meeting our manager will make an in principle offer we then aim to provide a formal offer within three days of meeting.
VFILES: That’s an incredibly short time-frame, given the underwriting and due diligence that inevitably takes place before a financial facility can be enabled. How do you ensure that you’re dealing with a viable company?
AS: We have streamlined our due diligence process, which we can complete with the client in a single day. The key for us is to gather relevant information about the applicant. For instance, we’ll need to know about the debtor book and the way in which the applicant does business. This is information that the company should easily have tohand.
VFILES: At what kind of company is FastTrack Invoice Discounting aimed?
AS: It’s primarily for businesses with an annual turnover of up to £5m and who initially want to access a standard ‘no frills’ facility in order to kick-start growth. Applicants will have to demonstrate established and effective in-house credit control procedures.
VFILES: Otherwise, the alternative facility would be Factoring?
AS: That’s right. In fact, we already have a FastTrack Factoring solution up and running. We launched it 19 months ago and it has proved very successful and has helped us grow our new Factoring clients by 140% within a 12 month period.
VFILES: Why have ABN AMRO Commercial Finance introduced this service?
AS: By offering rapid access to invoice finance, I think we’re doing something important in terms of restoring SME confidence. There is money available to SMEs at the moment, but there is also evidence that some companies are reluctant to access it. They may require finance to build inventory, take on new staff or tap into new markets, but many companies fear getting involved in a long process that may end in refusal. What we’re offering is a simple process that essentially takes the hassle out of applying for an Invoice Discounting facility. That said, while the process may be streamlined, the level of service hasn’t been diminished in any way. Customers can expect the same excellent service – only on a faster time frame.
VFILES: And presumably the ability to get finance on-stream quickly enables companies to respond to market opportunities as they arise…
AS: Yes, and it’s vital that businesses have the finances in place to help them move with the economy. I think it’s also important to stress that the finance we offer is for the long term. More so than ever before, businesses are looking for reliable partners who will provide consistent support. Because of the nature of our business model – with our lending linked directly to assets – ABN AMRO Commercial Finance has proven its ability and willingness to support clients through difficult economic circumstances and we’ll certainly go on doing that. Businesses that come to us through FastTrack Invoice Discounting and FastTrack Factoring are really joining the family. This means the opportunity will be there to access a broad range of ABL solutions according to the client’s circumstances and requirements. This in turn will help businesses create the growth in demand required by the wider economy.
VFILES: Alison Small, thank you very much.
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