Amount financedWe finance up to 95% of the value of approved invoices. Most other factoring businesses will only pay around 80-85% of invoice value – often less. Banks will sometimes provide up to 80% of your outstanding invoice amounts, depending on your company’s overall debt levels.
FLEXIBILITYApricity allows you to choose which invoices to fund, at what time and what percentage. For example, you may choose to only fund 50% or 70% of your invoice (up to 95%). Once your invoices are approved, it’s totally up to you.Many factoring firms will want to fund all your invoices, meaning you will be paying interest on your entire accounts receivable. With most banks, flexibility comes at a price. Generally speaking, the greater the flexibility, the higher your interest payments. In comparison, flexibility is central to our offering.
Security requiredIn most instances, the only security we require are the invoices themselves. This is why we only fund invoices issued to high credit customers. Most other factoring businesses require a first or subsequent GSA (supported by bank waiver releasing receivable’s to Factoring company). Banks will usually require security from you via a mortgage over land or other assets and a GSA. This means if you run into financial difficulties, the bank can take possession and sell your property.
Fees & chargesWe have a simple facility establishment fee structure. In order to cover our initial assessment costs, we require an upfront fee of $2,500, and once the facility is fully approved and depending on its size a further fee may be payable the first time you fund an invoice through us. Up to 95% of the invoice will be paid to your account upon approval. Our interest fees are deducted from the 5% held back. The balance is payable to our customers upon settlement of the invoice.Although fees and charges vary, we have seen some hefty cost examples, including one for a ‘periodic review’ charge of AU$2,200. These reviews will usually happen twice a year. Of course, this charge is often buried deep within a long letter of offer, so you may not even notice it until you are hit with the first review cost.
CONCENTRATION LIMITSConcentration risk is a term describing how lenders' funds are spread across different debtors and industries. Concentration limits are set when the lender decides how much lending exposure they can have to any one debtor or industry. Given our independent ownership, at Apricity we can set our own limitsWhile we can’t speak for everyone in our space, we know that concentration limits are a frequent reason why our clients have moved to our model from one of our competitors. No offence. We prefer us too.
Contract termsWe have no lock-in contracts. Once you become an approved Apricity customer, you can choose when to use us, which invoices and what percentage to fund (up to 95%). We’re here for you when you need us. We have seen contracts of 100 pages and more. Often companies are hit with huge break fees if they decide to go with another provider. We would never treat our customers this way. Thankfully this rarely happens anyway.
PeopleWe offer a personalised service. We are a boutique amongst giants, which means we don’t have large sales teams working slavishly to meet corporate budgets. We prefer to maintain a close, friendly relationship with our clients, and we will always put their interests at the forefront of our decision making. We know there are some great people out there. If you are reading this – come and work with us.