FAQs

Not too sure what supply chain finance is? Wondering how it works and if it is right for you? Have any concerns? 

All your questions are answered here. If you can find the information you need, please do not hesitate to get in touch.

Is SCF factoring?

TradeBridge SCF is not a factoring arrangement. With factoring you contract directly with a bank or a financier who takes a charge over your outstanding invoices as security for working capital or a loan. They become responsible for the collection of the payment and charges could be up to 500% more than SCF.

What security does TradeBridge require from me?

We contract directly with your customer (the buyer), if you elect to take early payment for an invoice, we will collect the funds from your customer. This means you do not have to provide any security to us.

What are the advantages for me?

Every business has to deal with fluctuations in cash flow and gaining access to working capital when cash flows are impacted can be difficult.  Releasing early payments from your customers is an effective way of managing spikes in cash requirements.

You can use your outstanding invoices to get immediate access to funds. You are not dependent on your customers paying you on time for you to meet your commitments to your staff and other operating expenses.

Is my early payment ‘Non –Recourse’?

All of our payments are ‘non-recourse’ which means that in the unlikely event your customer becomes insolvent (so long as you fulfil the simple conditions in the supplier agreement) your payment is safe, saving you money on credit insurance.

Am I tied in; do I have to use the program?

You can use the program as often or a little as you need. Use is discretionary; when you need funds you can request early payment.  

Will the SCF program affect my credit from other providers?

No. As we do not take any security from you, Tradebridge SCF can comfortably work beside other credit facilities you might have such as overdrafts and invoice discounting.

Are the funds guaranteed?

No. Whilst we do our best to ensure funding is always available to you, our facilities are subject to an overall limit per customer.

What document do I need to sign?

To access the program you will need to sign our supplier agreement. It allows us to pay you, and you acknowledge that our payment is full settlement of your customers invoice.

What does it cost?

Firstly, there is no joining fee or ongoing facility charges. When you take an early payment, there is a discount applied which comprises a financing charge and or a fixed service fee. The financing charge is determined by the length of time the funds are outstanding.

All charges are visible, and you can see them before you decide to access the funds.

How do I know is funding is available?

When your customer approves an invoice for early payment, it is posted on our on-line portal. You receive an email from us on the same day advising you an invoice has been approved for early payment. You can also see the amount available against any facility limits (if applicable).

How do I tell you I want to access the funds?

You sign on to our portal, all invoices that are approved for early payment are listed, and you simply select the ones you want.

Can I request partial payment of invoices?

At present you can only request for an early payment of the full invoice values.

How do I get the funds?

We process payment files every day at 2pm. All approved requests received by this time will be paid the same day via same day transfer (Faster Payments or CHAPS). Approved requests received after 2pm will be paid on the following day..

How do I know what invoices are paid early and what invoices will be paid by my customer?

We provide complete reconciliation reporting, you will easily be able to identify the status of all your invoices.  The buyer can also elect for us to pay all your invoices.  Therefore if you don’t select to take an early payment the payment will be made by us on the agreed terms.

How is the length of the funding decided?

The funding length is determined the date you decide to take early payment and the invoice due date agreed with your customer.  

Will all my invoices be included?

It firstly depends on your customer as they first must approve all invoices before early payment can be requested. In addition, each supplier will also have a credit limit to prevent any one supplier drawing down the whole facility. If you do expect a large invoice that you would like to fund via early payment, please advise your buyer / WTB early so that provision for an over limit payment can be made if possible. .

 

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Murray Stevenson
Sales Director
Woodsford TradeBridge