HSBC Invoice Finance
HSBC Invoice Finance UK Limited (HSBC Net) are one of the largest providers of Invoice Finance in the UK. As part of the HSBC Bank Plc group they work closely with their banking colleagues to provide a total finance solution for their Clients.
As they have one of the largest market shares it would be expected that a number of their Clients are considering the possibility of switching lenders. We can help you with our FREE switching service.
Why Switch Lenders?
There are a number of reasons why a Business may look to switch lenders. We cover some of the main reasons below.
The key reason why many businesses choose to leave their current Invoice Finance provider is down to cost.
In the current climate most High Street Banks are looking to reprice their Clients facilities.
As HSBC Invoice Finance are a High Street Bank they are expected to make a return off their Clients. Any Clients who do not generate sufficient income for the bank will most likely see their rates increased.
As HSBC Invoice Finance are a High Street Bank not many of the independent funders are able to compete at the same level when it comes to pricing. In these instances the only possibility is to switch to another High Street Bank.
We would recommend every business who uses Invoice Finance to complete a yearly comparison to see if they are being provided with the best rates.
All Star Funding Solutions offer a FREE comparison service from over 30 of the top UK funders.
We have seen an increase number of businesses switching lenders due to a decline in service from their current provider.
One of the main reasons for switching is due to the constant change of Relationship Managers. This is prevalent with a number of High Street Banks. On a number of occasions we have been advised that the Business does not even know who their Relationship Manager is.
Another service issue from High Street banks is to manage their Clients from a central location. This means that the Relationship Managers very rarely get out to see their Clients. We have seen many Clients switch lenders as their preference is to have a face to face relationship.
Change in circumstances
We often see businesses switching lenders as their business has had a change in circumstances which their current lender may not be able to support.
The type of change in circumstances could be
- A large concentration of sales to a single debtor.
- Export sales have increased and the current lender can not support.
- Trading terms have moved from 30 days to 60/90 days and the current lender restricts funding at 90 days.
- A switch from credit terms to pro forma – meaning the facility is no longer required.
- Sales and purchases are made to the same business creating a contra offset which can not be supported by the bank.
- Director / shareholder changes.
HSBC Invoice Finance uses their own bespoke reporting system called HSBC Net. HSBC Net is a very user friendly system, however, the recent advances in technology over the years means the systems provided by independent lenders offer the same if not better service to its Clients.
The recent trend is for reporting systems to be integrated into the accounting system of a business. A system that is integrated enables the lender to link directly to the businesses sales ledger and reduces the need for any uploading / reconciliations to be completed.
How easy is it to switch?
It is now easier than ever to switch.
All Invoice Finance lenders work towards a switching code of conduct from the Asset Based Factors Association. This details the requirements from both the incoming and outgoing lenders.
All Star Funding Solutions offer a FREE switching service and will be on hand throughout the transfer process. This allows you to concentrate on business activities without the worry of dealing with individual lenders.
How to apply for Invoice Finance?
Applying for Invoice Finance is very simple. Click the link below or call 0161 8211478 to speak with one of our specialists.
Finally as members of the Financial Intermediary and Broker Association you can be assured of a great service. https://www.fiba.org.uk/
Finance approval is subject to status and terms and conditions apply.