Provider Guide

RBS Commercial Services – Factoring

For businesses operating in a wide selection of industries, factoring can help turn unpaid invoices into working capital. This may help fund expansion, a large order or simply to streamline the finance function. By opening an invoice finance facility with RBS Commercial Services a cash injection of up to 90% of the value of outstanding invoices can typically be achieved.

Like many invoice finance providers, RBS Commercial Services structure the costs of a facility with two key charges:

• A service or administration fee, usually shown as a percentage of turnover
• An interest charge, payable on monies drawn against outstanding invoices. This charge is often expressed as a percent over bank base rate (OBR).
  

RBS Commercial Services can offer the same agreed level of finance for each approved invoice and customer transaction for the life of the invoice finance facility. In addition, RBSCS will provide your business with a comprehensive sales ledger management service. Naturally, this can ease the burden of an otherwise time consuming, but essential, business function. Likewise, for smaller companies, who do not require extensive management information systems, allowing RBSCS to manage your sales ledger will improve efficiency and allow your company to focus on what it does best.

By choosing RBS Commercial Services, your company will also gain access to FacFlow, a key advantage of the RBSCS offering. FacFlow allows your business to send sales information and invoices direct to RBSCS from your PC. In addition, your business will be able to monitor available funds as required and even produce various management information reports.

RBS Commercial Service customers, may also be offered the option of a Bad Debt Protection facility, acting as a complementary product to your invoice finance line. In the event of a customer falling into formal insolvency, a bad debt protection facility provides you with peace of mind. By using a bad debt protection facility, you can feel safe in taking on additional business, without having the worry of losses and outstanding balances.

Get a quote from the Royal Bank of Scotland for factoring

Factoring Terms

Depending on which article, lender or website you use, you may well encounter a number of different terms for factoring, for example, debt factoring or invoice factoring. Each of these products is a subset of the wider invoice finance range of products and services, offered by Banks and Independent lenders.