CREATIVE BAD DEBT PROTECTION

Who Underwrites Creative Capital’s Facility?

Our facility is underwritten by Euler Hermes UK, via Bluefin Insurance Services.

Is Protracted Default Covered?

Yes it is. In order to make sure this is covered, we do have to report seriously overdue debts to our insurance company. Once this has been done, we will then cease to fund against that debtor. This is built into our overall credit control process which we can discuss with you at any time.

Am I Tied Into A Contract?

No. As with our Selective Invoice Finance, you only use this as and when you need to. You only pay to insure a debt which is financed by us.

Is There a Set Up Fee?

No. We simply charge you a blended rate for our Bad Debt Protection and cost of borrowing. As with our non-insured Selective Invoice Finance, we charge a fixed rate which is simple to calculate and budget for.

How Is This Different From Credit Checking?

Firstly, credit checking only gives you an opinion of a debtors’ financial strength. If your credit checking facility gets this wrong, there is no recourse back to them. A Credit Insurance company will actually put their money where their mouth is. If they get it wrong and the debtor goes bust whilst you are owed money, they will pay a claim to you. A Credit Insurance company will often have access to more up to date information. They often underwrite based on management accounts supplied to them by debtors, as well as with payment information fed to them by other clients.

Why Do I Need Bad Debt Protection?

There is always a risk of a debtor going bust. As we saw during the last financial crisis, companies of all sizes can go bust, and these can be the most catastrophic. By insuring our debts, we give you the additional peace of mind that should the worst case scenario happen, we will be able to make a claim on your behalf, putting cash back into your business, and further helping to manage your cash flow.

What is Bad Debt Protection?

Also known as credit insurance, it protects you against your customer going bust, or simply not paying when they should have done. It covers against all insolvent events, as well as protracted default.

CREATIVE INVOICE FINANCE

How do we find out if we can use selective invoice finance?

Telephone our friendly team for an ‘in principal’ same day answer telephone 01244 561343 or email info@creativecapitaluk.com  – we work hard to provide you with the answers you need as quickly as possible.

Can I insure my debts?

We do also carry a credit insurance facility which can be accessed by all of our clients. If you would like to take advantage of this service, simply let us now, and we’ll do the rest.

What are the set up costs for selective invoice finance?

Unlike many other invoice finance facilities, we do not have any set up costs. Our Selective Invoice Finance facilities have only one fee associated with them, and that’s the daily interest rate we charge you when you finance through us.

Does Selective Invoice Finance lock me into a contract?

No. There are no minimum contractual terms or agreements. You can use this service as and when you need to. You are free to choose what’s best for you and the cashflow needs of your business

If I have selective invoice finance, can I still borrow from other sources?

Yes. Creative Capital’s Invoice Finance service does not impact or interfere with any current or future planned borrowing arrangements as we are buying an invoice and not lending funds. We can easily sit alongside other lenders.

Will my customer’s be aware of Creative Capital’s involvement?

Our Selective Invoice Finance service is always on a fully disclosed basis whereby the customer is notified of the transaction. 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.

What is the difference between Selective Invoice Finance and Factoring?

Traditionally when entering into a full book factoring arrangement you sell your entire sales ledger to a factoring company, who will provide finance against this. The factoring company will take over all the credit control and debt collection.  There may be several different charges to consider including Set up fees, Administration fees and Interest fees. Factoring facilities will also tie you into a long term contract, which can be for as long as 18 month to 2 years and which includes a notice period.

With Selective Invoice Finance from Creative Capital, you only finance the invoices you want to finance, when you want to finance them. You do not pay set up fees, you are not tied into a contract, and you look after the credit control and debt collection, allowing you to maintain your relationships with your key customers.

Is invoice finance new?

No. Invoice Discounting and Invoice Factoring have been around for many years, they are considered to be mature financial services which are rapidly growing in popularity. It is a common and widely used form of short term funding used by many small businesses.   Selective Invoice Finance gives business owners a flexible, short term cashflow solution.

What is invoice finance?

Invoice finance allows SME’s in a business to business environment to draw down money against sales invoices before the customer actually settles them.  This releases working capital for growing businesses.

Do you offer full invoice factoring or debt factoring service?

No. We don’t offer a full invoice factoring service.  Full invoice factoring would usually involve a lender taking complete control of your invoices, your credit control and your cash flow.   At Creative Capital we provide selective invoice finance which is flexible cash flow finance allowing you to raise funds against individual invoices as and when needed.

What is spot finance and single invoice discounting?

Selective invoice finance is also known as spot factoring and single invoice discounting in the UK.  They all describe the process of being able to raise cash flow finance against individual invoices.

Need Help?

If you require any help submitting your application, please call us on
+44 (0)161 905 0412

We are available Monday-Friday, 09:00 - 17:00