Supplier Invoice Finance Scheme(SIFS) for Homebase

Factsheet
Supplier Invoice Finance Scheme(SIFS)
for Homebase
Overview of the Supplier Invoice Finance
Scheme for Homebase
HSBC’s Supplier Invoice Finance Schemes are
innovative solutions that aim to fund supply
chains for large buyers. They are designed to
optimise payment terms, reduce costs and
increase efficiency of cash flows.
HSBC is delighted that Homebase have
selected us in making such a scheme available to
its suppliers.
This scheme will allow suppliers to immediately
discount receivables that have been approved
for payment by Homebase, providing
cheaper and quicker access to funding against
these receivables at a very competitive cost.
This cost is normally lower than usual,
because Homebase have removed many of the
risks and processes associated with conventional
funding facilities.
How the scheme will benefit you
Payment of receivables from Homebase
can be accelerated by up to 75 days
Option to draw payment immediately after
approval of receivables instead of waiting
until the day of maturity
Option to draw only as much funding as is
required, up to 100% of the available funds
Any finance used is normally at a lower cost
than usual
The finance arrangement does not normally
conflict with other funding facilities you have
in place, and can provide an additional source
of working capital
Online access to view receivables that
have been approved for payment, providing
visibility which helps with cash flow
planning and provides early warning of
potential disputes
Access to a wide range of other HSBC
products to help support your business.
Commercial Banking
How Supplier Invoice Finance
Schemes work
Supplier Invoice Finance Schemes are based
This form of finance is supported by an
around the well-established principle of ‘reverse
‘Agreement for the Purchase of Debts’ and
factoring‘ whereby HSBC purchase approved
does not require personal security from
trade debts owed to you by Homebase.
company directors.
The following diagram illustrates how the flow of
information and funds occurs
Goods sent to buyer
HSBC
Process buyer
invoice file
Buyer
Buyer approved
receivable file
Early payment offer
Update funds
available
HSBC
Funding advance
to supplier
HSBC
Transfer
discounted
funds to supplier
bank account
Agreed payment due
Buyer
Provides
payments
on invoice
due date
Early payment
selected
1 You deliver the goods or services against an
approved order to Homebase
2 Homebase will then notify HSBC
electronically of receivables that have been
approved for payment
3 HSBC make this information available to you,
along with the finance options, through an
online portal – Internet Invoice Finance
4 You can choose to draw up to the maximum
amount of funds allowable under the scheme
Release
retentions
Supplier
Offered funds
Early payment
Supplier
Cash in
receivable
Residual payment
Supplier
Receives balance
HSBC
Receives buyer
payment
Payment to HSBC
Supplier
Offered funds
5 HSBC makes payment against the funding
request from you
6 Homebase sends payment on the agreed
date to HSBC
7 HSBC receives and processes the payment
8 Any funding advance made by HSBC to you
is repaid
9 Any residual amounts previously not already
advanced are paid to you
Factsheet
What you can expect from us
Direct ongoing contact with key stakeholders,
group of invoice finance experts by telephone
Homebase
and online via Internet Invoice Finance
Same day notification by e-mail and
Internet Invoice Finance of any newly
approved receivables
A dedicated SIFS team available via telephone
or Internet Invoice Finance
Help when you first take the service to explain
how it works
Same day notification by e-mail and Internet
The expertise of an experienced office-based
Invoice Finance of any payments that are
support team at the end of the line who will
received from Homebase.
work with you.
Pricing
Discounting Charge
This is a finance charge similar to a bank
overdraft rate. It is charged on any funds
you withdraw.
Money Transmission Charge
Our standard payment method is BACS.
This method is provided as a free option
For BACS payments, the finance
charge commences
– For customers who bank with HSBC, when
the payment is credited to your bank account
A supplier finance service supported by a
including accounts payable, within
Remittance chasing 3 days before due date
Service delivered
– For non-HSBC customers, when the
payment is generated
For same day value such as via Clearing
House Automated Payments System or
telegraphic transfer the charge is £7.50 for
customers who bank with HSBC and £25.00
for those who do not.
The online system
You will be able to access the facility through
View a transaction history or reconcile
a bespoke online portal delivered through our
individual accounts receivable
market leading Internet Invoice Finance system.
It is available 24 hours a day, 7 days a week and
protected by industry standard 128-bit encryption.
Through this portal you can
Download a variety of reports to help keep
your accounting records up to date
Have visibility of future payment dates of
receivables from Homebase.
Withdraw early funding against
approved receivables
View incoming payments from
Homebase.
For more information contact the Supplier Invoice Finance Team on
0800 917 2966, fax 01903 825607 or email at [email protected]
hsbc.co.uk
Issued by HSBC Bank plc
HSBC Invoice Finance (UK) Limited
Farncombe Road
Worthing
West Sussex BN11 2 BW
Designed and produced by Purewhite Creative Limited, London
HSBC Bank plc 2009. All Rights Reserved.