F.A.Q.
We hope that you find this website informative, but if you have any questions about any of our services please feel free to call us on 800-433-6539. We are always happy to provide you with any assistance we can.
Alternatively, we have detailed below the most frequently asked questions:
QUESTIONS
What Is Receivables Funding – General
Application Process
Other Questions
Staffing Specific Questions
QUESTIONS AND ANSWERS
What is receivables funding?
Receivables Funding is where an advance (cash) is made to a Client against the purchase of an accounts receivable by a Factor. The Factor then proceeds to collect the receivable. The balance of the receivable less any fees due to the Factor is then payable to the Client on collection of the receivable by the Factor. Receivables Funding is an effective way for a business to finance growth or to assist in the restructuring of a business. It also does not lead to any loss in equity of your business nor does it involve taking specific security over personal assets. For more information on our Receivables Funding Programs click here. For more general information on our Programs click here.
What is “bad debt protection” and is there a difference between “non recourse” and “recourse” facilities?
“Bad Debt Protection” is where the factor assumes the credit risk, in case of failure of the account debtor, on purchased receivables. This can also be referred to as “Non Recourse.” Many of our competitors will only offer you Non Recourse facilities, what they do not tell you is:
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Frequently Non Recourse facilities carry a price premium
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Many of our competitors will usually only fund those receivables of yours they are sure carry no credit risk (nothing is for free), meaning that many of your receivables will be not funded in part or in full
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The receivable will typically only not be recoursed back to you if your customer becomes bankrupt!
We prefer to take a different approach. Normally our facilities are on a recourse basis but we are happy to with with any Credit Insurer you use and are also happy to give you a quotation for Credit Insurance. This has the following benefits;
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It is much more transparent for you to understand what you are paying for
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Where you do feel you need Credit Insurance (Bad Debt Protection) on some or all of your receivables this will be much more cost effective
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Where you feel you only sell to well rated customers (and we can work with you on providing credit information) then you will save thousands in fees
Our Marketing Representatives are happy to discuss which type of facility is best for you or provide you with proposals for either type of facility.
To be funded by Bibby Financial Services do I have to be in certain states?
Bibby Financial Services can fund any client in any state in the United States, our sister company Bibby Financial Services (Canada) can fund any client in any province of Canada.
What about the location of my customers?
Your customers can be based anywhere in the United States or Canada. We will also consider credit worthy customers in Mexico or other countries. For more information on Export Receivables click here.
What size of business does Bibby Financial Services fund?
We are willing to fund start up businesses and established companies. We can consider facilities of up to $5 million in funds advanced; higher facilities can be considered for established businesses.
Do I have to submit all of my receivables for funding?
Where we do offer facilities with minimum volumes this allows us to dedicate resources, thereby enhancing our service provision to you and enables us to provide you with a more competitive rate. Sometimes there are customers of yours to which it is not logical to include in our program and we can work with you in those situations.
How do I get updates on the aging and status of the receivables I have submitted for funding?
You will receive regularly monthly statements and facility reports. Also there is online access to your facility from which reports can be accessed at any time.
Where do my customers make payment to?
Your customers will be advised through notification on your invoices to direct payments to one of Bibby Financial Services’s lockboxes. You will be able to see images of the checks and remittance advices received through your online access to your facility.
My customer relationships are very valuable to me, how can I be sure these relationships will not be disrupted?
We take great care in how we approach your customers in making verification and collection calls. We understand that these are the lifeblood of your business as you are ours. Last year Bibby Financial Services collected over $5 billion of receivables for over 6,000 clients and have the experience of providing this service in a professional manner.
How long does it take to process my application and get me my first funding?
When we have received your completed application form with supporting information we usually take between 3 to 7 business days to process and establish your facility. This varies frequently due to the size of the business and/or the complexity of the facility.
What supporting information do I need to provide?
We will send you an Underwriting Checklist that will advise you of any additional information we require from what is set out in the Application Form (PDF, 42KB).
How many years of trading do I need to have?
We are happy to fund start up companies and have no requirements regarding the length of time a business has previously traded for.
Why are you cheaper than your competitors?
As one of the largest independent global receivable funding companies we are able to gain economies of scale that we can pass through to our clients. We also give our clients access to choices such as recourse facilities and committed volumes that allow us to be even more competitive.
What makes you different?
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Autonomous Local Business Units
We have regional based autonomous business units based throughout the United States. Each of these businesses is full service providing client services, underwriting, local marketing representative and their own executive management team. All services and decisions relating to the day to day operation of your facility with us are therefore done locally. -
Fast Funding
Funds will available on your verified receivables within 24 hours of receipt. For initial fundings on new facilities we expect to have you funded within 3 to 7 business days of receiving your application and supporting documentation, the time depends up the size of your business and structure of the facility. -
Competitive Rates
Everyone refers to their rates as competitive. We mean it. We typically save our clients at least 20% in fees over their existing receivables funder, often much more. Why? When you fund over $5 billion of receivables a year you have economies of scale you can pass onto your clients. -
Stability & Openness
We are financial stable and open with our information. Want proof? Ask for our parent companies annual report and we will provide it? Ask our competitors for their audited balance sheet… surely a funding provider will be willing to show you their financial strength? -
Flexible
We do not have rigid credit policies, we will look at your business and your businesses situation and work with you to develop a solution for your needs. -
Our Services
We offer more than just cash against your receivables, we offer you a professional collections service and a suite of additional services. -
Variety
Whether you are a new start or in business for 70 years, whether you are a service business or a manufacturer, as long as you sell to other businesses on credit terms of 60 days or less we look to working with you. We can fund business from start up to facilities of $5 million funds advanced, we are happy to work with business in high growth mode, restructuring and/or Chapter 11 or D-I-P situations.
How can I find out about the financial strength of Bibby Financial Services?
We are happy to share with you the Annual Report of Bibby Financial Services Ltd., our parent company. Feel free to ask our competitors to show you their balance sheet; you may find an element of reticence.
To see the annual report for Bibby Financial Services Ltd., click here. (PDF, 248KB)
To see the annual report for Bibby Line Group, click here. (PDF, 313KB)
Is Bibby Financial Services connected to the historic Bibby Line Group?
Yes, we are owned by the Bibby Line Group. 2007 is a momentous year for our business and our parent company, Bibby Line Group, which celebrates its bicentenary of its founding. To find out more about the Bibby Line Group and its two centuries of history, visit www.bibbylinegroup.co.uk.
What are the benefits of having the Payroll Management program web-based?
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The first benefit is the accessibility of the program. You can access your payroll entry screen from anywhere, anytime, on any computer with internet access. It is available 24 hours a day, 7 days a week, 365 days a year.
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There is no need to be concerned with software installation, updates, payroll calculations, report generation, etc. as all data storage, calculations, reporting and updates occur at our site.
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Bibby’s web-based payroll entry program is competitive on cost, functionality, and efficiency when compared to other payroll programs.
Why should I outsource my payroll and invoicing?
You can eliminate the stress and worries associated with the ever-changing payroll tax and filing laws. It ensures that your taxes are accurately paid on time. The billing is automatically processed and the invoices are mailed out promptly so there is never any doubt if last week’s invoices went out. You will not have to incur the cost of training and continually educating a back office person. It also allows you more time to concentrate on your business and spend less time on the back office operations.
What happens if a paycheck is incorrect?
All clients will have the option to have blank payroll checks at their location. This enables clients to cut their own payroll checks if necessary. The client would call us and we will instruct them on how to process the check for the employee. We also can prepare and overnight a new check and to your office. If the client utilizes our e-mail printing services for checks, a new check can be processed immediately and sent via e-mail.
What happens if an invoice is incorrect?
As soon as we are notified of the error a corrected invoice will be prepared and mailed immediately.
What happens if payroll hours were not turned in on time for this week’s run, but the employee is requesting the check?
All clients will have the option to have blank payroll checks at their location. This enables clients to cut their own payroll checks if necessary. The client would call us and we will instruct them on how to process the check for the employee. We also can prepare and overnight a new check and to your office. If the client utilizes our e-mail printing services for checks a new check can be processed immediately and sent via e-mail.
How do I get my information to your payroll department?
We normally receive our payroll information via our secure web program, Secure Remote Data System, time clock, file download, phone, fax or modem.
How long is the turnaround time from when you receive the payroll information until I receive the payroll checks?
Our general turnaround time is within 24 hours from the time we receive the client’s information.
Can there be more than one payroll run per week?
Yes, we can accommodate more than one payroll run per week, such as in a daily pay process.
How do you handle garnishments, wage attachments, insurance deductions, and other payroll deductions?
Once the client informs us of any garnishments, we make the appropriate settings on the employee’s records, so that the proper amounts are withheld and checks cut to the appropriate third party.
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