How long does it take to set up an invoice finance facility?
The time it takes to set up an invoice finance facility can vary depending on several factors, including the invoice finance provider, the complexity of your business operations, and the documentation required. In general, the setup process for an invoice finance facility typically involves the following steps:
- Application: You must complete an application form provided by the invoice finance provider. This may require providing information about your business, financials, invoices, and any other documentation or requirements specified by the provider.
- Due diligence: The invoice finance provider may conduct due diligence on your business, including credit checks, financial analysis, and verification of invoices and customers. This process may take several days to a few weeks, depending on your business’s complexity and the parties’ responsiveness.
- Agreement negotiation: Once the due diligence is completed, the invoice finance provider may provide you with an offer or proposal outlining the terms and conditions of the invoice finance facility. This may involve negotiation and discussion to ensure the terms are acceptable to both parties. The time required for this step can vary depending on the complexity of the negotiation process.
- Documentation: Once the terms are agreed upon, the invoice finance provider will prepare the necessary documentation, including the finance agreement, security agreements, and other legal documents. The time required for this step can vary depending on the documentation’s complexity and the parties’ responsiveness.
- Set-up and implementation: Once the documentation is completed and signed, the invoice finance provider will set up the facility in their systems, and you may need to provide additional information or complete any remaining tasks, such as setting up a separate bank account for the invoice finance transactions. The time required for this step can vary depending on the provider’s requirements and the parties’ responsiveness.
Overall, the time it takes to set up an invoice finance facility can range from days to months, depending on the specific circumstances. It’s essential to work closely with the invoice finance provider, promptly provide all the required information, and be responsive during the setup process to help expedite the timeline.