Faq

Factoring is simply selling your invoices for a small fee. Like any other asset in your business, you can sell the debts that insurance companies owe you for completed repairs.

Privy Finance will buy these debts from you for a small fee. We specialise in factoring solely for the smash repair industry.

It couldn’t be easier. Simply send us your repair invoice and the insurance company repair authority for your completed repairs BEFORE you send it to the insurance company. We check the invoice and if it’s all good, we buy it from you for cash immediately EFT’d into your bank account. For insurance company invoices accepted for discounting, we pay you up to 100% of the value of the invoice, less our factoring fee of 2%

1. When you must make a payment straight away

• Not paying wages on time can be a disaster
• Not keeping a supplier’s account up to date can see service cut-off (power, telephone) or the account frozen or litigation commenced (unpaid tax)

2. When you can make more income

• Sometimes having immediate extra cash lets you take on bigger repairs or new work.
• If the extra income from additional work is greater than the cost of the factoring then your net income increases
• Sometimes having immediate extra cash means you avoid extra costs, perhaps avoid late fees
  If the extra cost of factoring is less than the cost of the late fees you avoid, then you have protected your net income from an even bigger fall.

3. When you only need the “loan” for a very short period. Unlike new bank loans, there are no Establishment Fees. These fees can make short term bank debt really expensive compared to factoring despite its headline interest rate seeming very low.

4. When you need cash immediately. We regularly get cash to new customers the SAME DAY they first contact us. YES! It really is that fast!

Factoring can immediately release the cash tied up in your unpaid insurance company invoices, giving you the freedom to put the cash to good use. We can get you the cash as quickly as just 2 hours* if you really need it, or by the next business day, which is our standard service. Both of which is a fraction of the time it takes most Banks to act.

If you need a large amount or just a small amount of cash right now then invoice discounting/factoring can’t be beaten

• It’s fast – Same day in need
• It’s easy to set up. No security. No financial accounts or similar are needed.
• No establishment fees or setup costs
• You incur costs only if you use it.

(*An additional fee applies for this service. Call us for details)

Like a traditional term loan there are a number of different factors which will determine the cost of an invoice finance facility. These typically include: Time in business, credit worthiness, industry/type of business, total loan amount required (invoice value) and type of invoice finance facility required (spot, partial ledger, all of turnover).

Expect to pay a small fee (otherwise known as a factoring fee) on each invoice which is financed as part of your facility by the lender. This fee is a small percentage of the invoice and will be deduceted by the financier when the invoice is paid in full by your customer. The balance of the invoice is then paid back to you.

With invoice financing the invoices themselves are the collateral which is being offered to secure the money borrowed. As such, any business or personal assets outside of your accounts recievable are not required when you establish an invoice financing facility. Important to note, you will typically receive a better rate for an invoice financing facility over other short term (unsecured) lending options available today.