MODULE ONE - The asset-based finance landscape

This module gives students a detailed background into how invoice finance originally came about and the development of asset based finance in the UK. The module outlines the current landscape, including the marketplace, the role of UK Finance, Professional Standards and the Complaints Framework. The module then focuses on explaining the different products being offered in the marketplace.

Topics covered:

• History of finance and invoice finance
• The professional standards
• Factoring Products
• Invoice discounting products
• Other invoice finance products
  • Non-recourse
  • Hybrid products
  • Selective invoice finance
  • Platforms
• Asset-based lending products
• Latest statistics and industry updates
• AML and other relevant legislation

MODULE TWO - Fraud and risk

This module focuses on specific issues that might lead to an invoice finance provider losing money. Areas covered include invoice errors, quality of goods or services, delivery problems (including PODs, free issue goods, part deliveries etc), discounts and returns, and fraudulent activity.

Topics covered:

• Invoice problems
• Contractual issues
• Different types of fraud
• Indicators of fraud
• Minimising fraud

MODULE THREE - Legal aspects

This module starts by providing the student with an understanding of the different types of business structures in the UK. It also covers basic English law, including contract law and laws in relation to the sale of goods or services. The module then explains the basic principles underlining the provision of invoice finance, the different types invoice finance agreements, and other security available to a financier.

Finally, the module highlights other considerations that an invoice financier must be aware of, including data protection and money laundering regulations.

Topics covered:

• Sources of law
• Contract law
• Sale of goods and services
• Purchase of debts
• Agreements
• Indemnities and guarantees
• Legal problem areas
• Money laundering and data
• Protection legislation

MODULE FOUR - Financial analysis

This module focuses on giving the student a better understanding of financial statements. It explains the different elements of a set of accounts, their purpose and what they can tell you about a company.

The module also gives the student a number of tools that can be used to evaluate the financial performance of a business.

Topics covered:

• Rules regarding financial accounts
• Directors report
• Profit and loss
• Balance sheet
• Cashflow forecasts
• Ratio analysis

MODULE FIVE – Client management

This module covers many aspects of managing a client, from the point of take on, to client visits and reviews, to managing the dual role of risk and relationship. The module also covers invoice finance accounting methods, including statements and availability calculations. Risks associated with invoice finance are highlighted, along with warning signs and preventative measures to minimise risk.

Topics covered:

• Overview of the role
• Take on
• Managing the on-going relationship
• Client statements and availability
• Client visits
• Client reviews
• Risks and warning signs
• Challenges with financing specific industry sectors
• Preventative measures
• Termination

MODULE SIX - The sales process and audit and survey

This module starts by underlining the importance of marketing to a business, along with the core marketing concepts. The module then goes on to outline the sales process involved in taking on a new client, from the first contact with a prospect through to the offer letter.

The module also highlights to the student the different challenges and risks associated with offering invoice finance to different industry sectors, and ways to minimise these risks when structuring a deal. The module then goes on to explain the considerations required when pricing a facility.

Topics covered:

• Core concepts of marketing
• The marketing mix
• New business visit
• Gathering information (business set up, management team, financial information, sales ledger management)
• Challenges with financing specific industry sectors
• New business report
• Facility offers
• Pricing an invoice finance facility

The audit and survey module highlights the benefits of undertaking audits and surveys and outlines the key information that should be gathered at an audit or survey. The module covers areas such as preparation for a visit, understanding the prospects or clients’ business, their systems, financial stability, sales ledger controls and statistics, quality of the debts and debtors, and identifying and evaluating risks for a financier.

Topics covered:

• Purpose of audit and survey visits
• Preparation for visit
• Financial stability (including bank and creditor position, HMRC and profitability)
• Sales ledger quality (including debtors, debts, erosions and record keeping)
• General overview (premises, staff, stock and gut feel)
• Contracts
• The audit reports

MODULE SEVEN - Debtor litigation

The debtor litigation part of the module outlines the rules underlying rules which govern any form of debtor litigation. The module takes the student through the different processes available in pursuing debts, and the steps that should be followed to ensure successful litigation. It also outlines the judicial processes and factors that determine which track to follow, costs, and methods of enforcement.

Topics covered:

• The Civil Procedure Rules 1998
• Procedures available
• Pre-action protocols
• Defended claims
• Judgments
• Enforcing judgments
• Costs

MODULE EIGHT – Insolvency

This Insolvency module outlines and compares the processes available where a business becomes insolvent, including CVA, administration, and liquidation.

It explains the impact of each process on an invoice financier, how the financier’s security would work in these situations, as well as how assets would be distributed.

Topics covered:

• CVAs
• Administration
• Liquidation
• Fixed and floating charges
• Distribution of assets
• Glossary of insolvency terms

MODULE NINE – International invoice finance

This module sets out the different challenges faced by businesses trading overseas, including distance, language barriers, local legislation and customs, and currency. The module also covers the different documentation involved in transactions, and methods of payment. The module then goes on to cover import and export invoice finance and methods available to financiers to administer transactions, such as Factors Chain International.

Topics covered:

• Issues affecting international trade
• Credit assessment
• Documents of title
• Payment methods
• Export invoice finance
• Import invoice finance
• Currency transactions
• International invoice finance chains

MODULE TEN – Asset-based lending

This module provides the student with a comprehensive description of asset-based lending, including descriptions of the various asset types suitable for finance and the operational aspects relating to these products. This module also includes managing risk and exit strategies.

Topics covered:

• Types of assets financed
• Principles of stock finance
• Legal security
• Managing the collateral
• Change
• Managing risk