Post on 30-Sep-2018
Factsheet
Supplier Invoice Finance Scheme(SIFS) for Argos
Overview of the Supplier Invoice Finance Scheme for Argos
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 Argos 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 Argos, providing
cheaper and quicker access to funding against
these receivables at a very competitive cost.
This cost is normally lower than usual,
because Argos have removed many risks and
processes associated with conventional
funding facilities.
How the scheme will benefit you
Payment of receivables from Argos
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
around the well-established principle of ‘reverse
factoring‘ whereby HSBC purchase approved
trade debts owed to you by Argos.
This form of finance is supported by an
‘Agreement for the Purchase of Debts’ and
does not require personal security from
company directors.
The following diagram illustrates how the flow of
information and funds occurs
HSBCTransfer
discounted funds to supplier
bank account
HSBC Process buyer
invoice file
Update funds available
Payment to HSBC
Buyer approved receivable file
Early payment selected
Early payment
Agreed payment due
Residual payment
Early payment offer
Goods sent to buyer
Buyer
BuyerProvides
payments on invoice due date
SupplierOffered funds
SupplierOffered funds
SupplierCash in
receivable
SupplierReceives balance
HSBCFunding advance
to supplier
HSBCReceives buyer
payment
Release retentions
You deliver the goods or services against an
approved order to Argos.
Argos will then notify HSBC electronically
of receivables that have been approved
for payment
HSBC make this information available to you,
along with the finance options, through an
online portal – Internet Invoice Finance
You can choose to draw up to the maximum
amount of funds allowable under the scheme
HSBC makes payment against the funding
request from you
Argos sends payment on agreed date
to HSBC
HSBC receives and processes the payment
Any funding advance made by HSBC to you
is repaid
Any residual amounts previously not already
advanced are paid to you
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What you can expect from us
Direct ongoing contact with key stakeholders,
including accounts payable, within
Argos
Remittance chasing 3 days before due date
Same day notification by e-mail and
Internet Invoice Finance of any newly
approved receivables
Same day notification by e-mail and Internet
Invoice Finance of any payments that are
received from Argos.
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
– 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.
Service delivered
A supplier finance service supported by a
group of invoice finance experts by telephone
and online via Internet Invoice Finance
A dedicated SIFS team available via telephone
or Internet Invoice Finance
Help when you first take the service to explain
how it works
The expertise of an experienced office-based
support team at the end of the line who will
work with you.
Factsheet
The online system
You will be able to access the facility through
a bespoke online portal delivered through our
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
Withdraw early funding against
approved receivables
View incoming payments from
Argos
View a transaction history or reconcile
individual accounts receivable
Download a variety of reports to help keep
your accounting records up to date
Have visibility of future payment dates of
receivables from Argos.
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.
For more information contact the Supplier Invoice Finance Team on 0800 917 2966, fax 01903 825607 or email at Supplierinvoicefinancescheme@hsbc.com