bottom curve

Frequently asked questions (FAQ)

  1. What is receivables funding?
  2. What is “bad debt protection” and is there a difference between “non recourse” and “recourse” facilities?
  3. To be funded by Bibby Financial Services do I have to be in certain states?
  4. What about the location of my customers?
  5. What size of business does Bibby Financial Services fund?
  6. Do I have to submit all of my receivables to be funded?
  7. How do I get updates on the aging and status of the receivables I have submitted for funding?
  8. My customer relationships are very valuable to me; how can I be sure these relationships will not be disrupted?
  9. How long does it take to process my application and get me my first funding?
  10. What supporting information do I need to provide?
  11. How many years of trading do I need to have?
  12. Why are you cheaper than your competitors?

  1. What is receivables funding?

    Factoring is where an advance (cash) is made to a Client against the purchase of an accounts receivable by a Factor. The Factor then proceeds to collect the receivable. The balance of the receivable less any fees due to the Factor is then payable to the Client on collection of the receivable by the Factor. Factoring is an effective way for a business to finance growth or to assist in the restructuring of a business. It also does not lead to any loss in equity of your business nor does it involve taking specific security over personal assets.

    Back to top

  2. What is “bad debt protection” and is there a difference between “non recourse” and “recourse” facilities?

    “Bad Debt Protection” is where the factor assumes the credit risk, in case of failure of the account debtor, on purchased receivables. This can also be referred to as “Non Recourse.” Many of our competitors will only offer you Non Recourse facilities; what they do not tell you is:

    • Frequently Non Recourse facilities carry a price premium
    • Many of our competitors will usually only fund those receivables of yours they are sure carry no credit risk (nothing is for free), meaning that many of your receivables will not be funded in part or in full
    • The receivable will typically only not be recoursed back to you if your customer becomes bankrupt!

    We prefer to take a different approach. Normally our facilities are on a recourse basis but we are happy to talk with with any Credit Insurer you use and are also happy to give you a quotation for Credit Insurance. This has the following benefits;

    • It is much more transparent for you to understand what you are paying for
    • Where you do feel you need Credit Insurance (Bad Debt Protection) on some or all of your receivables this will be much more cost effective
    • Where you feel you only sell to well rated customers (and we can work with you on providing credit information) then you will save thousands in fees

    Our Sales Representatives are happy to discuss which type of facility is best for you or provide you with proposals for either type of facility.

    Back to top

  3. To be funded by Bibby Financial Services do I have to be in certain states?

    Bibby Financial Services can fund any client in any state in the United States; our sister company Bibby Financial Services (Canada) can fund any client in any province of Canada.

    Back to top

  4. What about the location of my customers?

    Your customers can be based anywhere in the United States or Canada. We will also consider credit worthy customers in Mexico or other countries. For more information on Export Receivables click here.  

    Back to top

  5. What size of business does Bibby Financial Services fund?

    We are willing to fund start up businesses and established companies. We can consider facilities of up to $5 million in funds advanced; higher amounts can be considered for established businesses. 

    Back to top

  6. Do I have to submit all of my receivables to be funded?

    Where we offer facilities with minimum volumes this allows us to dedicate resources, thereby enhancing our service provision to you and enabling us to provide you with a more competitive rate. Sometimes there are customers of yours which are not logical to include in our program; we can work with you in those situations.

    Back to top

  7. How do I get updates on the aging and status of the receivables I have submitted for funding?

    You will receive regularly monthly statements and facility reports. Also there is online access to your facility from which reports can be accessed at any time.

    Back to top

  8. My customer relationships are very valuable to me; how can I be sure these relationships will not be disrupted?

    We take great care in how we approach your customers in making verification and collection calls. We understand that these are the lifeblood of your business as you are ours. Last year Bibby Financial Services collected over $6 billion of receivables for over 6,500 clients and have the experience of providing this service in a professional manner.

    Back to top

  9. How long does it take to process my application and get me my first funding?

    When we have received your completed application form with supporting information we usually take between 3 to 7 business days to process and establish your facility. This varies frequently due to the size of the business and/or the complexity of the facility. 

    Back to top

  10. What supporting information do I need to provide?

    We will send you an Underwriting Checklist that will advise you of any additional information we require from what is set out in the Application Form.

    Back to top

  11. How many years of trading do I need to have?

    We are happy to fund start up companies and have no requirements regarding the length of time a business has previously traded.

    Back to top

  12. Why are you cheaper than your competitors?

    As one of the largest independent global receivable funding companies we are able to gain economies of scale that we can pass through to our clients. We also give our clients access to choices such as recourse facilities and committed volumes that allow us to be even more competitive.

    Back to top