National Society

Invoice factoring is used by businesses for a variety of reasons, but most commonly to increase working capital and improve cash flow.  It can be a useful source of funding for start-up businesses that have plenty of orders but find difficulty obtaining new business loans to fund them.  Similarly, any business with an immediate problem obtaining cash to meet its obligations might find a factoring service helpful.

Invoice factoring can also be a way of reducing administrative overheads, as the factoring company will take on responsibility for collecting payments due on the outstanding invoices.  Furthermore, the factoring company can help with credit management and, depending on the type of agreement, take on the liability for bad debts.

New business loans or other types of business loan can potentially be used instead to provide funds to support a business.  However, the business will need to be able to show that it is able to repay the loan.  Invoice factoring advances money against invoices raised for work that has already been completed and so there is less risk that the money will not be available to repay the loan.  It is therefore often easier to obtain than some other sources of finance.

In the UK, people have the benefit of a healthcare system paid for by general taxation, but for a number of people a health insurance plan is a good way to stay prepared for unforeseen injuries and illnesses.

Health cover ensures that patients can get fast access to the treatment they need.  They can also bypass extensive waiting lists and also gain access to more expensive forms of treatment if they wish. Health insurance is especially important for people with busy lives who cannot afford to take much time off, and for those who are moving into retirement age. For people who simply do not wish to be inconvenienced any more than necessary by illnesses or injury, health insurance is an essential investment.

Health insurance is similar to other types of insurance in that many types are available, and each potential customer is well advised to research the deal that is best for them. The type of health insurance will vary based upon the customer’s individual medical history, as well as other relevant factors, such as any family history of particular diseases such as cancer, or heart disease (which are the two most common killers in western countries). Age is another factor in negotiating health cover – older customers should expect to pay a higher rate for equivalent cover than younger customers. The chance of an older customer having to use their health insurance policy is that much higher, so the insurance cover is more expensive.

Since we have a comprehensive healthcare system that is free at point of entry (though it is paid for by everyone through taxes), many would argue that separate private health insurance is unnecessary. However, good health makes life much more enjoyable, and while the NHS does an excellent job, it cannot completely cater to the individual needs of every person. Health insurance helps to increase the overall quality of life for many and is a great finishing touch to a healthy lifestyle, or a valuable asset for those with recurring issues.

In a recent survey carried out by a group of financial researchers, it was discovered that more than eight out of ten Britons are turning to the internet in a bid to find cheap house insurance.  As well as trying to save money, it was reported that, for those that led very busy lives, being able to compare house insurance on the internet was important.

Insurance comparison sites can provide policy deals quickly and the websites are created to be as user friendly as possible, making any search results easy to understand.  Having resources available to them that allow the public to search such a large number of providers in one go is particularly useful, especially as the country has seen an increase in the number of policies available.  The survey revealed that a 19% growth in the number of buildings insurance policies was seen between 2008 and 2011.  In addition, there was a growth of 15% in the number of home contents insurance policies available.

The research also found that customers were willing to switch providers in order to gain the best deal, with around 34% of insurance policyholders changing their provider between the 2009 and 2010.  Even though they found that the number of people looking to save money by cutting the cost of insurance had grown, which is positive news for the insurance industry, the findings also showed that customers were not loyal to a particular provider when it came to saving money.

For larger businesses that need more immediate access to monies from outstanding invoices, they need look no further than invoice discounting services.  Invoice discounting allows the business to borrow against unpaid invoices in much the same manner as business loans work.  This is usually best for larger businesses as the minimum annual turnover requirements are higher than invoices factoring services.

How it Benefits You

If you want to maintain control over invoices instead of sending them to a factor, invoice discounting allows you to manage your own sales ledger.  When you create invoices you notify the discounter of the details and they advance you a pre-agreed percentage of the total outstanding amount.  Typically, this amount is around 80 per cent, though the exact amount varies based upon the size of your company and its credit history.  The amount you can withdraw changes as new invoices are added.

Fees

Invoice discounting is not free.  As with business loans, you must pay interest on the borrowed amount.  You pay interest, which is much lower than with typical loans, until the customer pays the invoice in full.  You then receive the rest of the invoice amount minus the discounter’s fee.  This fee can be a set percentage of the total invoices or a regular monthly amount. 

You can save on interest by choosing a company that has access to multiple banks.  This will allow you to get the best possible interest rate so you have more funds coming back into your business. 

When taking out a health insurance policy an applicant’s health status will be taken into consideration, as well as their pre-disposition to certain illnesses, depending on lifestyle or family medical history. If the underwriters decide that it is too risky to insure for certain illnesses, they will impose exclusions on the policy. Most companies will decline to cover any expenses incurred in connection with pre-existing medical conditions.

More expensive policies usually include treatment for chronic illnesses such as cancer. Alternatively, cover can be taken out so that upon diagnosis of a chronic or terminal illness, a lump sum will be paid out to the patient or their family.

A health insurance policy may impose waiting periods on certain conditions before a claim can be made. An example of a condition with an imposed waiting period is maternity cover where an expectant mother is not covered unless she gives birth a certain number of months after taking out the insurance.

There are health insurance policies that offer additional features such as overseas cover, which makes provision for sickness or accident costs incurred abroad, as well as any repatriation or air ambulance expenses incurred during a medical emergency. Income protection is another supplementary item on certain policies, and covers the insured should an illness or injury cause them to be out of work for a length of time.

Incentives are offered by insurance companies to encourage new customers and many policies will include a newborn baby on a family policy, for no extra charge, until the following renewal date.

Houses that have been bought simply to be rented out require particular insurance, known as ‘Buy-to-Let’ or ‘Landlord’ insurance. Usually, this kind of insurance protects the owner from any potential losses to the building and any contents belonging to the owner. Typically, it will not cover any items which belong to the tenant currently renting the building. Cheap building insurance quotes in this field can be complicated to find. 

Landlord insurance covers the building from physical damage in the event of fire, explosions, storms or floods, while optional coverage includes things such as rent guarantee insurance, legal protection and liability insurance. Liability insurance is usually an option purchased by wily rental property owners, as it can help protect them from any lawsuits brought against them by unhappy or injured tenants. Sometimes, contents insurance can be a bonus for both owners and tenants, though usually tenants will have to buy their own contents insurance. Rent Guarantee insurance can work as a cover in the case of the tenant not paying the rent. Usually, the amount paid for rent guarantee is organised before and references must be taken before cover begins.

The prices of buy to let insurance can depend on many things; the location of the property, the tenant type and the cost of rebuilding, these are just some of the rating factors for this kind of insurance.  The insurance policy can usually be tailored to suit the individual landlord. 

Generally, owners of rental properties are interested mostly in buildings insurance. Cheap buildings insurance quotes can be found online through price comparison websites, or through an insurance broker.

Many large businesses are already using invoice discounting.  If you do not meet the minimum annual turnover requirements for discounting, you should try invoice factoring.  The two finance solutions work in a similar manner, but factoring is better suited to small businesses. 

Do You Qualify

While some factors require you to have an annual turnover of at least £50,000, some will waive this requirement if you have an excellent credit history.  You should also deal mainly with other businesses.  Typically, factoring is not available for retailers. 

Benefits

Small businesses need capital to grow.  Gain access to outstanding invoice capital when you choose invoice factoring.  The basic principle is the factor pays you for your invoices.  They collect from your customers so you do not have to manage your own debt.  Note that some factors allow you to manage debt collection yourself.  You have access to a percentage of the invoice, usually 80 per cent, within 24 hours until the invoice is paid.  You then receive the rest, less the factor’s fee, which is a set amount or percentage of the invoice.

Like car insurance, house insurance is generally a must in the UK. This is especially true in the case of homes that are bought on mortgage, because any damage to the property must be repaired, this means funds must be available to pay for the work required to bring the house back to standard. However, unlike car and house insurance, contents insurance is very much at the buyer’s discretion. Contents insurance covers your personal belongings against theft or certain types of damage. For people who have many valuable items, it is advisable to invest in at least a basic level of contents insurance, as they are not only costly to replace, but they are also more prone to being tempting to thieves.

Contents insurance can save money in the long run when disasters are taken into account. However, most of us are looking to save money, but not every insurance company offers the same value with their cover. Luckily there are numerous ways to compare contents insurance providers such as Policy Expert, the number one way being to compare premiums on the internet. A wide range of price comparison websites have given rise to a new industry, whereby insurance providers put themselves up for comparison against their competitors. This enables consumers to find the deal that is best suited to their exact needs. Of course, most insurance is competitively priced when the reputation of the provider and specific terms of the contract are taken into account. Always be sure to read the fine print in order to judge how well each option is priced.

Business finance is probably as old as trading itself. Even a thriving company sometimes runs into cash flow problems or needs funds urgently to purchase additional machinery or tools. Any business that receives an unusually large order might find it difficult to fulfil such an order without having access to cash reserves.

Traditionally, banks were the main way of getting business finance. The fact that they have rather stringent credit requirements and take a long time to make a decision has resulted in more and more businesses looking for an alternative, which they frequently find in the form of invoice financing.

Gone are the days of having to submit stacks of financial statements and your business’s credit record being scrutinised under a magnifying glass before your application could be approved. Gone also are weeks of waiting anxiously for the bank’s decision and once more waiting for them to pay the money into your bank account.

With invoice financing all you have to prove is a good quality debtors book. Your business also needs to have a certain minimum yearly turnover, usually around £50 000; in addition your customers need to be other companies rather than private individuals.

Once your application has been processed the money can be in your bank account, often within 24 hours. This is of course good news for a business that needs cash urgently.

Usually, the invoice factoring company will take over your debt collection. If you do not warm to the idea of someone else chasing your debtors for money, you can opt for invoice discounting, which means you still have to collect the money and then pay it over to the factor.

There are, of course, costs involved, usually between 1.5% and 3.5% of the amount of the cash advance. Unless you have opted for non-recourse financing, you will also be liable for money that cannot be collected from your debtors.

Life insurance is an assurance policy that you take out to ensure financial security for your loved ones in the event of your early death.  However distressing this is to contemplate, it is a relief to know that your family are protected against financial hardship if such an event occurs.  Apart from ongoing living expenses the costs of your funeral and other associated expenses will be provided for. 

Life insurance premiums are paid by a monthly or annual payment. From the moment the policy is activated, until it matures or in the event of your death, the payments must not be missed.  The named beneficiary will receive a lump sum if you die, but in some instances insurers will classify the policy as fully paid-up after 25 or 30 years and you can leave any funds in the policy to keep growing in value if you wish.  If you do this no further premiums are necessary.

Choosing the right life insurance policy for you and your family can be a minefield; there are many different policy types, and you will need to make the correct decision.  Seek professional advice before you undertake such a serious financial decision to minimise any future hardship your loved ones might suffer if you get it wrong.

Be wary of taking the cheapest available quote, as this may not provide the cover that your family will need.