Client Leavers Guide When it s time to say goodbye Invoice Discounting

Transcription

1 Client Leavers Guide When it s time to say goodbye Invoice Discounting Key Information on Agreement Termination Invoice Finance

2 Introduction While we are sorry to say goodbye to a client, we recognise that things do move on. If we can be of assistance again at any point in the future then please do not hesitate to get in touch as we would be delighted to hear from you. As our agreement ends we are committed to making the next steps as clear and easy to follow as possible and we have developed this guide to give you a clear understanding of the responsibilities and requirements on both sides. Please pay special attention to the actions you need to take. You will find that some of the words used in this guide that start with a capital letter this means it may have a special meaning as defined in your Invoice Discounting Agreement (the Agreement ). Please always refer to the Termination references within your Agreement and feel free to discuss your individual circumstances with your Relationship Manager. We are there to support you through this process so please do ask them any questions. Once again, thank you for working with us and we wish you success in the future. RBS Invoice Finance is a proud member of the Asset Based Finance Association (ABFA). Their website can be found at 2 Leavers Guide Invoice Discounting September 2013

3 Summary of Termination Process Notice to Terminate Agreement Meet with your Relationship Manager On or before Termination Date we will apply all outstanding charges and fees Repayment of your Liabilities to us FacFlow will be kept open on view only access once cleared funds have been received for up to three months Termination of Agreement accompanied by the re-assignment of Debts You can now instruct your Customers to make payments to your new bank account details Leavers Guide Invoice Discounting September

4 Agreement Termination There are key requirements to meet in order to end your Agreement with us. We have outlined the key steps on what is required and there is also a process chart that summarises the steps. Termination Process 1. If you wish to end your Agreement with us then you need to give us written notice on headed paper, signed by an authorised signatory of your business. The Notice Period required is detailed in your Agreement. 2. It is important that you arrange to meet with your Relationship Manager to discuss your requirements and agree the next steps. 3. Repayment of your Liabilities is required by the end of the Notice Period. Until then you will need to continue to Notify us of all Invoices, Credit Notes and Customer Remittances as normal. 4. On or before the Termination Date we will apply all outstanding charges and fees if appropriate. 5. Once we have received cleared funds to remove all Liabilities, all Debts will be re-assigned to you and your access to FacFlow will remain open (view access only) for up to three months. 6. On completion of the leaving process and only after the Agreement with RBS Invoice Finance is Terminated, it is very important to write to all of your Customers advising them of your new bank account details. Moving to another Invoice Finance Provider If you are moving to an alternative provider and the new provider is an ABFA member then we will use the ABFA guidelines to transfer the facility on the Termination date. Any changes to the Termination date should be agreed with your Relationship Manager and confirmed in writing. If your new provider is not a member of ABFA, subject to the acceptance of all parties, we would normally proceed using the ABFA guidelines. These, with any other arrangements, would need to be agreed with the new provider and our Relationship Manager in advance of the Termination Date. Following Termination, any subsequent cleared payments received by us from your Customers can be forwarded to your new provider for up to three months but where the new provider is not an ABFA member, this will be subject to additional documentation. You should not Bank any further cheques into the RBS Invoice Finance facility account. Return to Bank Overdraft/Current Account Where there is an outstanding amount on the Memorandum Discounting Statement this will be required to be cleared prior to or on the agreed Termination Date. If you have more than one ledger, each ledger needs to be settled in the appropriate currency. If you have Credit balances no funds will need to be transferred to us. We will ask you to sign a Credit Balance Indemnity letter in order for us to keep the Trust Account open for up to three months following Termination. Any payments received after this time will be refunded back to the remitter by cheque. Bad Debt Protection If your Agreement is Non Recourse, Bad Debt Protection ceases on the Termination Date. However, outstanding Bad Debt Notifications or Bad Debts incurred up to the Termination Date will be processed. Business Failure or Termination of the Agreement with us We may wish to Terminate the Agreement and will give the required Notice Period stated in the Agreement or in the case of a breach or failure of your business we may choose to give a reduced period. A full definition of Termination Events and their consequences can be found in your Agreement. Should your business be about to fail, please contact your Relationship Manager before making any arrangements with Administrators/Insolvency agents. Early communication with RBS Invoice Finance may help in maximising the collection of Debts from your Customers. We also have specialist teams who may assist you in obtaining payment from your Customers and additional fees may apply. These are detailed within your Agreement. 4 Leavers Guide Invoice Discounting September 2013

5 Frequently Asked Questions Post Transfer of funds What will happen when my Customers payments are received after we leave? Your Trust Account will remain open for up to three months after which payments will be returned to the remitter. How often will funds be transferred across? Cleared funds will be transferred over daily. How will we know which Customers have paid when cash is forwarded in bulk? You will either be able to see the Sales Ledger Report on FacFlow or, if this has been closed, then you can ask for a copy of this from your Relationship Manager. You will also have access to the cash queries helpline. How will funds be transferred? Will there be a charge for this? Sterling The method of funds transfer may be electronic and may incur charges. Non-Sterling Currency Normal currency charges will apply. How long will the Trust Account be kept open for? Your Trust Account will remain open for up to three months. What happens to payments received from my Customers once the Trust Account is closed and funds are no longer transferred across? Once cleared payments have been received we will return them to the remitter. Can my Customers pay directly in to my current account going forward? Yes, when the Termination Date has passed, RBS Invoice Finance have confirmed that they are fully repaid and the Debts have been re-assigned to you. FacFlow How long will I be able to view the FacFlow system after Termination? FacFlow view only access will remain open for up to three months. What will I be able to view on FacFlow after Termination? The same as a live facility. For how long will I be able to view my statements on FacFlow and receive statements in the post? Statements are available while FacFlow access remains. A closing statement will be sent to you at the end of the facility. Charges How exactly are my Termination fees calculated? These will be discussed with your Relationship Manager when you give notice and are detailed in your Agreement. A written breakdown of fees and charges will be available from your Relationship Manager. What can I do to reduce my Termination fees? If the Notice Period in your Agreement is given in full you will not incur a Termination fee. Can I have a breakdown of the total balance to Terminate my facility? Yes, this can be calculated for you on request. Security What will happen to my Debenture or Charge after I leave? You will need to apply to Companies House in order for this to be released. How do I release my Debenture Charge? Please refer to the appropriate document can be located in the Forms section. Leavers Guide Invoice Discounting September

6 When/How do you release Guarantees and Indemnities? These will be treated as closed when all your Liabilities are repaid and Debts have been reassigned to you. We can issue a formal letter discharging Guarantees and Indemnities upon request. When will the RBS Invoice Finance Security be released? It depends on the Security type. Your Relationship Manager will be able to advise you on this. Moving to an Alternative Invoice Finance Provider How will my Customer know that I have transferred my Invoice Discounting facility to a new provider? If you have moved to another ABFA registered provider, you and your new provider will need to advise your Customers of your new details. Termination Periods How long is the Termination period and what is my Minimum Notice Period? These may vary but will be stated in your Agreement. Can I Terminate my Agreement without giving the Minimum Notice Period? Consideration will be given to such requests, however, in the event that we do agree to your request, additional fees and charges may apply. Miscellaneous How do I change my bank account details to ensure cash is forwarded to the correct account? Once the Termination Date has passed and RBS Invoice Finance have re-assigned your remaining Debt then you can notify your Customers to amend their bank details. What can I expect to happen during the Termination Process? Your Relationship Manager and Assistant Relationship Manager will continue to monitor and manage your facility throughout this time and will be on hand to answer any questions. When do I stop Notifying RBS Invoice Finance of Invoices? Your Agreement remains in force until the Termination Date therefore all Invoices must continue to be Notified to RBS Invoice Finance until this time Who do I contact after Termination if I have any questions? For cash queries, please contact the Cash Team direct on Telephone No: Lines are open Monday to Friday 9am 5pm (except for Bank Holidays). Calls may be recorded. address: INVOICE.DISCOUNTING@rbsif.co.uk For Bad Debt Protection queries, please contact Customer Risk Department on Lines are open Monday to Friday 9am 5pm (except for Bank Holidays). Calls may be recorded. You can continue to contact your Relationship Manager or Assistant Relationship Manager for all other queries. We take service seriously and whatever the reason you are leaving us we aim to deliver a clear, pain free and professional leaving experience. As such, we not only invite your feedback at any stage, we will also actively seek feedback from you by telephone or independent survey to ensure the service you have received has met your expectations. RBS Invoice Finance Limited, Registered in England No Registered office: Smith House, Elmwood Avenue, Feltham, Middlesex TW13 7QD