Frequently Asked Questions
What is Invoice Finance?
Invoice finance that allows companies to sell their accounts receivable to improve their working capital. This provides the business with immediate funds that can be used to pay for company expenses.
What are the benefits of Invoice Finance?
Invoice Finance puts you back in control. With an Invoice Finance Facility from Apricity you will be able to pay your suppliers on time (and may even get discounts for early payment), meet payroll commitments with greater ease and grow your business by adding suppliers. Once your facility with Apricity is approved, it allows you to choose which invoices to fund, how much and when.
What kind of security will I need for invoice finance?
In most instances, the only security we require are the invoices themselves. This is why we only fund invoices issued to your larger high quality customers. Most other factoring businesses will require security by way of property or other tangible assets.
What percentage of my invoice can I fund?
We can advance 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.
Do I have flexibility to choose what invoices are funded?
Yes, Apricity allows you to choose which invoices you raised against your approved debtors you wish to fund, at what time and at what percentage. For example, you may choose only to fund 50% or 70% of your invoice (up to 95%). Once your debtors and invoices are approved, it’s totally up to you.
What are the fees for my invoice finance facility?
There are two fees payable to set up your facility – but no other ongoing account of facility fees. The first fee is a $2,500 application fee and covers our initial assessment costs. The second fee or $2,500 or 0.25% of the Facility Limit (whichever is greater) is payable upon finalisation and execution of all documentation. By arrangement, this fee may be deducted from the first invoices being funded.
Is there a charge when I want to add or remove Debtors?
No, there is no extra cost to make changes to your approved debtors.
Do I need to commit to handing over all my Accounts Receivable?
No, our solution is selective invoice funding meaning, you choose what you want to fund and when, as well as what percentage you want covered.
How long does it take for funds to land in my account?
Depending on your bank and setup, once approved funds are accessible very quickly. In some cases almost immediately. Although generally speaking, between 24-48 hours.
Is there a minimum or maximum invoice value we can fund?
No. We don’t have set minimum or maximum amounts. However, each invoice is required to pass credit approval before funding.
What's the catch?
There isn’t one. Our offer is simple and straightforward.
How long will the application process take?
The application can take a few days, or longer, depending on how quickly we can access the required information. We work with our clients to ensure this process is expedited as efficiently as possible.
Can I request a facility increase, if so are there any fee's/charges?
Yes you can. No – there are no additional fees for increasing your facility.
What fees do I have to pay?
Apricity has one application fee for the life of your facility and no ongoing administration costs. The application fee is deducted the first time you use the facility. 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.
What are the contract terms?
We don’t have 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%). In contrast to Apricity terms, we have seen contracts of 100 pages or more in this industry, often with companies hit with huge break fees if they decide to go with another provider.
Where do you get your funds from?
We draw our funding capital from a range of private and institutional investors. To find out more, please email firstname.lastname@example.org
What makes this different from factoring?
Factoring businesses will usually take over the management of all your accounts receivable. Our solution means we only fund the invoice you choose. You remain responsible for chasing the payment of invoices from your clients.
How does this impact on my bank relationship?
It normally doesn’t. Only when your bank has registered a general security over your company’s assets will we require you to talk to them to agree they limit this charge over some of your debtors (the one you wish Apricity to fund). We do not need you to change your business bank accounts.
Does the debtor become aware of this facility?
Yes. As we do not take any security other than the invoice, we need acknowledgement that the invoices being funded have been approved and will be paid into our account. At the establishment of the facility, you will serve a Notice of Assignment to your customers and obtain their confirmation that your bank details have been changed to ours. We may also need to contact your clients from time to time to verify the approval of invoices, so you can continue to receive funding.