CHOCCS

Client Handles Own Credit Control facility to release the funds tied up in invoices.
Business Finance Team

Benefit of CHOCCS facility

The simple difference between a CHOCCs facility and other invoice finance products is that you will be in charge of chasing the payments owed to you on the invoices you have financed. A confidential invoice discounting facility is a form of invoice finance where the customer is completely unaware a facility is in place. Invoice factoring works similarly, although it is fully disclosed that a lender will be involved in the process. The CHOCCs facility is hybrid of the two meaning the customer is aware of the lenders presence in the process, although no contact is made between them.


A CHOCCs facility is useful for those who cannot yet qualify for a full factoring facility due to being to early in your business. You will have to show the lender involved that you have the capability to contact your clients with the intention of chasing down your invoices on their behalf.

A CHOCCs facility is also useful for those who raise multiple smaller invoices, as this way the lender won't have to chase a large number of clients for payment.


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Eligibility

Turnover

Unless you are a new start-up company, the minimum turnover most lenders will deal with is £100,000.

Trading History

Similarly to Turnover, start-up companies can get funding. Once you have filed accounts for the year, we can then apply you as a fully-fledged trading business.

UK Registered Businesses

Due to us dealing with UK Based Lenders, we can only find funding solutions for UK Registered Businesses.

FAQs

How much will an Invoice Finance facility cost?
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There are two fees involved with an Invoice Finance facility. The service fee is calculated against the companies turnover, and covers the cost of the lenders service for the facility, including dealing with the collection of the funds, the administration, and the lender maintaining the company’s sales ledger. The other fee involved is the discount fee (interest) this is charged against the money the company borrows from the lender. This is charged daily, and applied monthly. The typical service fee is around 3% annually, and a standard discount fee is around 4.5% monthly.

Am I eligible for an Invoice Finance facility ?
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Eligibility varies largely from lender to lender, with some much more flexible, some much less. The basic criteria for applying for an Invoice Finance facility is as follows:
- £100k minimum turnover
- UK Registered Business

If you don’t meet this criteria it isn’t the end of the road, other funding options are available, and this can be discussed with one of our consultants.

How long does it take to arrange an Invoice Finance facility ?
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Invoice Finance facilities can be completed in as short as a few days, although the process can take longer. Our aim is always to make the process as quick, and simple as possible.

How much money can I get through an Invoice Finance facility ?
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Invoice Finance facilities have varying amounts of accessible funds. Rather than a monetary maximum amount of monies available, Invoice Finance is calculated by what percentage of your invoice can be advanced. Most lenders can advance up to 90% of your invoice value. The percentage of your invoice being advanced also depends on which industry you operate in, with some being more/less preferable.

Why choose Spark Finance?
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We are not your average broker. We strive to find you the perfect funding facility for your business, in the easiest way possible. We designate a member of our team of specialist finance consultants to you, walking you through the entire process until the funds are in your hands.

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“Would thoroughly recommend using Spark Finance, we had great service all the way through the process from Perry. We will definitely be back should we need any more finance for my business”

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Disclaimer: Spark Finance (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 13182103) helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Spark Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Spark Finance may receive a commission or finder’s fee for effecting such introductions.
© Spark Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. Their reference number is 958123, and you can use that to find them on the FCA register.