Is Invoice Discounting a new business?
No, Invoice Discounting and factoring have been in existence for
many years, they are considered mature financial services around
the world and are widespread in Europe, USA/Canada, UK,
Australia and New Zealand. It is a common and widely used form
of short term funding for small and medium sized businesses.
Does Creative Capital lend
money?
No, at Creative Capital we only buy assets, the assets we buy
are accounts receivable and are evidenced by an invoice.
Am I locked into a contract?
No, there are no minimum contractual terms or agreements, you
can use the service once, ad hoc or as regularly as you need to
– you’re free to choose.
Do I have to factor all my
invoices?
No, quite the opposite in fact, there are no obligations to
forcing you to include all your sales through our service – you
simply choose which invoice or invoices you want to sell, it’s
really all up to you, however we do have a minimum value
requirement of £5,000 per debtor
If my invoice is not paid
what recourse does Creative Capital have?
If after 75 days the invoice is unpaid you the client must
either buy the invoice back, swap with a new invoice or the
guarantor must buy the invoice back from us.
Are my customers notified of
the transaction
(i.e. disclosed or undisclosed)?
Our service is always on a fully disclosed basis whereby the
customer is notified of the transaction with Creative Capital.
The customer is requested to confirm receipt of our notification
as well as acknowledgement of the receipt of the goods or
services. The customer is also required to acknowledge that
there are no disputes or warranties with the invoice and that
they will pay the invoice directly to Creative Capital at the
end of the credit period.
Do I have to provide any
guarantees?
Yes, we require that the owners of client companies provide
Creative Capital with a personal guarantee where they personally
stand behind all of the obligations their firm has to Creative
Capital as a part of our terms.
