Understanding the Ins and Outs of Invoice Factoring

Copy of Invoice

Invoice factoring allows small companies to borrow against receivables without the normal credit check hassles.

Thanks to invoice factoring companies, small and newly started up businesses can access almost instant capital. This allows them to continue operating their business. Invoice factoring is very different from a loan, which is what makes it such an interest concept. Rather than borrowing money that has to be repaid with an interest rate, the business actually sells their invoice to the factoring company at a discounted rate. The rate varies depending on the factoring company, the financial standing of the business, the type of invoice, the creditor and more. Essentially, however, an invoice is usually purchased for between 98.8% and 65% of the actual value. The factoring company then pays that amount directly to the company, and they will then become responsible for collecting the money.

Why Choose Invoice Factoring

In most cases, businesses choose invoice factoring over loans because it is so much easier and quicker to get your hands on the funds. Furthermore, the credit worthiness of the business is irrelevant. Rather, the factoring company looks at the credit worthiness of the client. This means that, on paper, the company is not actually increasing their debt.

This system offers a number of clear advantages. Most notably, the business can continue to operate as there is no cash flow interruption. This can be very important, because businesses often have to invest before they are able to complete a next job, and they can only do so if an invoice gets paid. Another great advantage is the fact that the business is not liable for any non-payment. Once the factoring company purchases the invoice, it becomes theirs. So, if the client then decides not to pay, or has to go through a lengthy chasing procedure, this will not affect the business in any way.

Clearly, it is very beneficial for a business to be able to access money without having to plunge into debt. Yes, the cost of using a factoring company can be quite high, particularly for the first few invoices, when the percentage paid as a fee may be slightly higher. On the other hand, there is no need to worry about making monthly repayments and there is no debt in the name of the business. This system is far more beneficial than those offered by capital venture lenders of angel investors. Once the funds have been received, the business can spend them anyway they can, as they have simply been paid for a product, being the invoice in this case. The debt continues to exist until the invoice is fully paid by the creditor, but it is a debt that then belongs to the factoring company.

Clearly, factoring is a great option. It ensures small businesses are able to continue with their operations and that they don’t have to turn customers away because they are unable to fulfill new orders. Meanwhile, the factoring company is able to earn their money, as they purchase the invoice for slightly less than its actual value. A win-win situation.

PayMe from Celtrino

early payment in 2 clicks

Easily eliminate your cash flow conundrums with “PayMe” the early invoice payment solution

Businesses face a common issue when it comes to their cash flow – they often have a short window to pay their invoices, while the companies they supply may not pay their invoices for months. This presents a problem when it comes to getting the working capital they need to operate and grow. That’s when early payment enters the picture.

Early payment is a way to shorten the time between when you issue an invoice and get paid for it. While it can traditionally take up to 90- days to get paid, with early payment, a third party purchases the invoice and you get your cash in a matter of days. You’ll receive approximately 80 – 85 % of the face value of the invoice upfront and get the balance (less fees and discount charges) when the invoice is settled by the buyer.

More and more business owners and their advisers are becoming aware of the benefits that Invoice Discounting can bring.  As well as providing companies with a reliable source of cashflow, it gives business owners the confidence and the capital they need to expand efficiently and react quickly to market conditions and opportunities. As increasing numbers of business owners realise that they can maximise their cashflow by leveraging their debtors’ ledger, it’s no surprise that Invoice Discounting is growing into a mainstream funding option.

Watch how easily the process works by clicking on the play button below:

Click on this > Pay Me PDF Brochure <  for information

 by Kevin Faulkner – Marketing Executive

Namaste India day!

 DSC01094नमस्ते और आपका स्वागत है

A new initiative within the walls of Celtrino has seen employees being encouraged to introduce their culture and cuisine to work colleagues on a monthly basis.

What started out on a trial basis has gradually been embraced and has become an eagerly anticipated event for all our employees. Its a fantastic opportunity to understand more about the many nationalities who drive the success of the company on a weekly bases.

Our latest event was India day. Hosted in the boardroom, we all gathered for a very informative video (click here to watch it) based on all of the wonderful facts about India, its many languages, and stunning images of this beautiful country.

We were treated to some traditional Indian dance by Gunjan and after a quick Q&A session with Juby, Fazil, Debangen, Gunjan, Hasitha, Archana and Sandeep we exited to our rooftop terrace which was bathed in bright sunshine to enjoy all of the homemade Indian delights provided by our hosts.

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After a brief overview of the delicacies on offer the hungry employees got stuck in to a colorful array of dishes provided.

Given some reassurance that the spiciness of the dishes had been toned down I tucked in to a tasty onion bhaji and added some chicken and lemon rice to my plate. My dish was bursting with flavors and it was not long before employees began queuing up for second helpings and an ensuing food coma.

We would like to thank all the guys for the huge effort on their part giving us the opportunity to experience a different culture in the workplace. It engaged our staff members in conversations about India and about the tasty treats prepared by our hosts. It was such a success that it was suggested we have India day everyday!

Stay tuned to Celtrino’s blog for our next cultural day of wonder brought to us by our lovely Sri Lankan accountant Madhu.

by Kevin Faulkner – Marketing Executive

www.celtrino.com

5 reasons why EDI is still alive and well

Understanding the Benefits of Electronic Data Interchange.

Check out our EDI Solutions now

EDI Its Alive

Its been almost 15 years since Mark Hoffman of Commerce One declared “EDI is a dead man walking”.  Now perhaps Commerce One was ahead of its time but by 2003, it was the dead man, because in my mind, its focus was on driving people away from something that worked cheaply to a new model that would ultimately be disruptive.

The Lesson? Technology that enables missions critical operations are often the most protected. When companies find something that works, they’ll tend to stick with it. EDI wasn’t “sexy”, but it enabled 20% of the Global GDP for a fraction of the price of any other technology. In some worlds, that is much better than “sexy”.

So now lets take a look at the benefits of EDI and the advantages it offers that continue to drive demand.

1.Competitive Edge

Everyone in life wants to be considered as attractive. Some people are naturally attractive and some people unfortunately are not. But beauty is in the eye of the beholder (they say) which gives everyone a fighting chance. Now, if you are in business and are using electronic data interchange or EDI for short then you are extremely attractive to your customers. You are in their eyes cheaper and more efficient to deal with than a competitor trading on paper. Your costs will be lower because you require less man power to process orders, delivery or payments and you are stunning to them.

2.No more Duplication

When documents need to be re-keyed it increases the risk of costly errors. Nobody’s fault. Its just the fact that we are human and we make mistakes. So a better solution is to reduce these errors by allowing EDI to process and retrieve documents faster. It will do the heavy lifting for you whilst providing speed , accuracy and visibility.

3.Eliminate Paper

Below are the results of a 2013 study on the burden of paper on a non EDI company.

Here are some paper based facts on the average organization:
▪ On average, the cost in labor to file one document is €20.
▪ Between 2% and 5% of an organization’s files are lost or misfiled on any given day.
▪ Companies on average spend €120 in labor to find one misfiled document.
▪ 1 out of every 20 documents is lost.
▪ Approximately 25 hours are spent recreating each lost document.
▪ Approximately 10-12% of documents are not found on the first attempt.
▪ 400 is the number of hours per year the average employee spends searching for documents.
▪ More than 70% of today’s Businesses would fail within 3 weeks if they suffered a catastrophic loss of paper based records due to fire or flood.
▪ It takes an average of 10 minutes per paper document to retrieve, copy, and re-file.
▪ The average document is copied 19 times.
▪ The average worker makes 61 trips to the fax machine, copier and printer.
▪ 60% of employee time is spent working with documents.
▪ 90% of a business’s information is in documents
▪ Each four drawer file cabinet holds an average of 10-12,000 documents, takes up 9 square feet of floor space and cost €1500 per year.

4.Reduce Lead Times

Electronic trading documents can be delivered far more quickly than their paper counterparts, thus the turnaround time from order to delivery can be reduced. By using EDI for forecasting and planning, companies are able to get forward warning of likely orders and to plan their production and stock levels accordingly.Integrating EDI to your business allows documents be processed much faster, reducing lead times and speeding up payments.

5.Increase the Beauty of your Trading Relationship

Beauty is simplistic in nature and electronic documents are beautiful in there simplicity. Accurate documentation ensures accurate supplies and with sequentially numbered documents its easy to pinpoint missing documentation without trawling through piles of paper. Visibility is increased between buyers and suppliers and improves business relationships by dramatically reducing errors that can cause friction.

www.celtrino.com

Visit our website for more information or for our latest blog posts follow @Celtrino on twitter.

by Kevin Faulkner – Marketing Executive

Into Africa : Celtrino Looks To The Future

Just as the Irish winter begins to bite, my thoughts return to a recent business trip to Lagos Nigeria where their winter is quite a different story altogether. Previous travels in rapidly developing economies had prepared me for the infrastructural challenges I’d find. However, I’ll readily admit that my wardrobe is ill-equipped for attending formal meetings in 35o Centigrade!

 Planning such a trip took months of preparation. Fortunately, we were brilliantly assisted in our efforts. The Irish Government led a trade mission to Nigeria and Ghana in early December 2015 provided a fantastic support eco-system to Celtrino in terms of preparation and day-to-day on the ground activities.

 It was a real high impact tour de force performance by Minister Coveney (Minister for Agriculture, Food and the Marine), His Excellency Seán Hoy (our Ambassador To Nigeria) as well as event  organisers Julie Sinnamon (CEO of Enterprise Ireland) and Aidan Cotter (CEO of Bord Bia) and their talented teams.

Celtrino In Lagos With Minister Simon Coveney

 

(Photo From left to right: H.E Seán Hoy; Ken Halpin; Minister Simon Coveney; Julie Sinnamon)

 

 

During the packed 2 day visit I had great meetings with a diverse set of key players of relevance to Celtrino (including a pitch to 40 leading Nigerian Financial Service Providers). The focus of our meetings was the potential fit for our newest e-Commerce Marketplace services which offer scalable trading systems to the FMCG sector. The meetings went exceptionally well. The senior people I met responded very favourably to our proven track record and the modular nature of the service offerings.

 Culturally, I found Nigerians extremely friendly and professional in this ambitious dynamic changing country. In some ways, it helped that there are an estimated 40,000 Nigerians already living in Ireland and that Nigeria is well represented in Celtrino’s multicultural workforce comprising 14 different nationalities.

 In servicing the infrastructural trading systems needs of our customers as they grow their businesses, Celtrino plans to play its part in helping to generate €545 million of target Irish export revenues to Nigeria by 2018.   Onwards and upwards!

Celtrino Is On The Move

So firstly hello, I know it’s been a while! You know how sometimes you just get too caught up with what’s going on and forget about things like blogs? Well that happened to us :( But that is going to change. Keep a close eye on Celtrino from now on because we have good news.

Bird Flying

Celtrino is flying from what has been its nest for the past 14 years. Parnell Street has been a great location for us for multiple reasons but mainly for being so well placed within the heart of Dublin City. Fear not though, our new location is in the Digital Hub.

More and more of Ireland’s top technology talent is being produced there. Ireland is getting recognized both at home and abroad for the outstanding quality of technology graduates. Celtrino has chosen the Digital Hub wisely (if you ask me) as it wants to be close to that talent.. The most up and coming center of technology growth in IRELAND!! Yes I did say for the whole of Ireland. So why wouldn’t we move there? It makes total sense.

The main focus of our move though is to grow our team of experts to match our business growth. Restricted space for expansion means that Parnell Street just doesn’t fit us all in anymore. We currently have a staff of 40 which we hope to grow to over 55! After all we need some extra space to flex our muscles right? We have placed special emphasis on increasing our sales & marketing departments to meet our current demand. We are at the forefront of our game, we are growing and it is being reflected by our move to bigger offices. Exciting news for us and for the economy.

Choosing the perfect fit is always difficult. I mean how many pairs of shoes do you try on before you find the right one? On the flip side it’s also hard to discard an old pair of shoes (which you love) because they are not sufficient anymore. This is how it felt for us (being so attached to our current base) but after an extensive search we have found the perfect fit and it has many benefits.

Re-locating means our current staff don’t have added travel time. We have a huge selection of shops and retailers to choose from. Lunch breaks will consist of trying out the new cafés and post work treats can happen just around the corner in the Guinness storehouse or Arthurs Bar :) !

Fish Bowl

So I guess by now you are eager to know where we are moving to? Well I will tell you where we are moving to, The Liberty Exchange, Meath Street, Dublin 8!

The area is under complete redevelopment, the Digital Hub is expanding with Celtrino being a central part of that expansion. This means that our building is brand new and getting fitted to suit our team of highly skilled and driven individuals.

Why not be a part of our future and keep an eye on our blog for the latest news and pictures on the exciting move ahead. We will keep you posted.

 

Posted by,

Céline-Fleur Halpin-Guillalot,

Junior Market Research Analyst.

www.celtrino.com

Visit us for more information or follow @Celtrino

 

 

Why it’s nuts to bolt-on to your ERP system

Red Robot 2

Attempting supply chain automation within an ERP system can be a costly mistake. But there is a better way.

They say a camel is a horse that has been designed by a committee. Much the same can be said for many ERP systems, especially those systems installed in medium sized manufacturers.

Manufacturers have let themselves be painted into a corner regarding their ERP platform. Bolting-on even more functionality to their ERP system is time-consuming, expensive, and a heavy drain on internal resources.

When that bolt-on functionality revolves around the supply chain, the logic is even more tenuous. Adapting and extending ERP systems calls for a specialised skill set. It’s rare for people with those skill sets to be equally adept at the intricacies of supply chain management and supplier on-boarding.

Times are hard, so why add cost and complexity to an already complicated environment when there’s something that’s already out there, and it’s tried, tested and proven.

That something, is the on-line supply chain transaction platform. Simply put, such platforms are a means of securely exchanging transaction-related documents electronically. They include: purchase orders, invoices, shipping notes, goods inwards, received notes, statements and everything else. Supply Chain Transaction Platform Info

How can we help?

Doing the heavy lifting of the hundreds of thousands of supply chain transactions outside the ERP system sharply reduces the cost and complexity. It reduces the time-to-benefit, and provides richer reporting functionality than the typical manufacturer would achieve on their own.

ERP

With Celtrino’s own on-line supply chain transaction platform, all of your supply chain activity is located, transacted and logged in the cloud. It feeds the ERP system with data that is known to be 100% clean and validated. Performance reports are available across a wide range of metrics. These metrics provide a high level of control and accountability right across the organisation.

By automating these paper-based processes, you push decision-making authority closer to where the work happens. There is no more logging into disparate systems or trawling through reams of paper to access critical KPI data.

Front-line managers can get the metrics that they need in order to be more efficient, while senior managers and the CFO get instant access to information to help with more strategic decision-making.

All this is achieved without burdening the ERP system with yet another layer of cost and complexity.

The message for manufacturers?

Fence off your ERP system, and instead invest in supply chain transaction automation where it will deliver the greatest ROI, on a built-for-purpose platform that specialises in such transactions.

www.celtrino.com

Visit us for more information or follow @Celtrino

by Kevin Faulkner – Marketing Executive

supply chain automation, accounts payable automation, saas, b2b, automated accounts,

Accounts Payable Automation and “What’s In It For You?”

Help your Accounts Payable department to save any time spent chasing lost documentation, by seeing the light and embracing the cloud!

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The Staff who work in your accounts payable department love their job. It gives you peace of mind to think that they get your payable’s paid on time. You also like how they know where in the process, any invoice is at every moment in time right?

Wrong!

Now that we are finished dreaming let’s face the facts. The Accounts Payable process can be challenging, particularly if all you have to work with is a manual, paper-based AP process. That’s where Accounts Payable Automation comes in.

AP people are hard-working (we like them a lot) but they spend wasted time chasing lost documentation and requesting copies of invoices which is impacting on their work flow. You may not be aware of that fact but it’s true, go ahead and ask them.

We have spoken to enough companies before and after they changed over to accounts payable automation to know its true. So below I will outline the facts of how AP automation can make a difference:

The Benefits of Accounts Payable Automation on behalf of your AP staff:)

1.You can reduce your costs by streamlining your accounts payable process and you can deliver an immediate reduction in administrative costs

2.You can have an efficient world class accounts payable department that processes invoices with greater efficiency and accuracy than can be achieved with a manual, costly and error prone approach

3.You can improve profits (hooray!) by reducing accounts payable processing transaction costs, taking advantage of supplier discounts and eliminating late-payment penalties

Lady with money

4.You can clean up your data as only approved invoices are fed into your back office system reducing errors and speeding up the accounts payable process

5.You can eliminate paper and help to save the environment by automating your Accounts Payable process.  You will eliminate the need to track, trace and store paper invoices making your staff extremely happy.

Celtrino Accounts Payable Solution Here>

Each step of the Accounts Payable process is time consuming and the cost of one error can be significant.

Automating your AP process will allow you to take advantage of the cloud based technology that is currently evolving. It will tidy up the paper trail and make your accounts payable staff very happy.

In short, it will free up your staff to be more productive in the areas that matter like revenue growth. Which is never a bad thing.

If you would like more information then check out our  white paper “The Business Case for Accounts Payable Automation” to find out more.

www.celtrino.com

 Visit us for more information or follow @Celtrino

by Kevin Faulkner – Marketing Executive

Businesses Are Facing Radical Technology Trends

cloud computing b2b services

Businesses are being continually challenged by new technology trends such as Mobile, Cloud Computing and Consumerisation. But only technology combined with strong business leadership can ensure businesses survive and thrive in the future no matter how challenging the market becomes.

Do these business challenges sound familiar to you?

  • Struggling to adapt your business model to new technology?
  • Not sure how to innovate to ensure best practices within your company?
  • Have your businesses change programs failed?
  • As a CIO are you connected with your company’s customers?
  • Do you have a diverse range of data languishing on one of your companies servers which is not being used to drive your business forward?
  • Confused about the cloud computing issue? What? When? How?
  • Worried about possible cyber-attacks on your company’s network?
  • Is your business model being threatened by more nimble and agile companies created through digital innovation?
  • Are you keeping up with market and technology trends?

Continue reading

Are you ready for the SEPA migration3

Celtrino SEPA Survey: The Results Are In

Celtrino SEPA SurveyAre you ready for the SEPA migration3

Last month, Celtrino undertook a survey to gauge the progress businesses have made with their SEPA switch-over. The survey gathered information on businesses’ SEPA-readiness and their general grasp of the changes SEPA will bring. The results showed a vast difference in the experiences of businesses with their migrations. Continue reading