Payost vs. Bibby Financial Services
The storm restoration business makes a lot of demands on you, your crew, and your equipment. Those demands are never so obvious as when you’re waiting for a utility to pay your invoices for the valuable work you performed.
More often than not, they’ll make you wait 90 to 120 days for your payment. In the meantime, you’re running low on working capital yet still have to pay staff, maintain preparedness, and pay off subcontractors. This is the reason why a lot of storm restoration company owners consider invoice factoring as a way to survive the cash flow crunch. Bibby Financial is one of the largest factoring companies in the world but could they help you? Let’s find out.
What Services Do Bibby Financial Services Offer?
Bibby Financial offers a range of financial services for businesses large and small. They’ve been around since 1982 and in that time, they’ve grown from a small family business to a finance company with global reach. While their range of services is impressive, the one relevant to storm restoration companies like yours is their invoice factoring service.
Invoice factoring doesn’t change much from company to company. Some offer slightly different payout rates while others vary in the number and severity of their hidden fees. Bibby Financial pays up to 92% of your qualifying invoices. In most cases, however, the amount you’ll receive will be anywhere from 80 to 85%. This is about standard for the industry.
The thing that separates Bibby from other factoring companies is that they try and sell you lots of other services as well. Some you may find intriguing but most are services you won’t need so be on your guard.
How is Bibby Financial Services Rated?
Bibby Financial Services is a highly-rated financial services company. Their credentials aren’t in question. What we’re concerned with here isn’t whether they are reliable or unreliable. We’re concerned with whether their invoice factoring service is the right choice for storm restoration companies. Invoice factoring from Bibby Financial...
- Finances up to 92% of the total value of the invoice
- Usually provides financing within 24 hours of approval
- Offers accounts receivable management support
- Offers an online account management system
Bibby Financial Services Rates and Fees
The rates and fees Bibby charges for their invoice factoring will change from customer to customer. If you’re a large company with robust annual income and low debt you’ll likely enjoy a 92% payout that we mentioned above and you won’t encounter too many of their hidden fees and penalties.
If, however, yours is a smaller company with more limited income and you’re in the midst of an acute cash flow emergency, you’ll encounter lower payout rates and more fees as well. Minimal factoring fees are typically:
- 8% of the invoice value
- 3% of your annual turnover value
If your invoice doesn’t pay out after 90 days, you’ll also have to buy it back with considerable charges, fees, and fines involved. You can choose non-recourse factoring if you wish to avoid that, but it’ll cost you another 5% of the value of your invoice.
Bibby Financial Services Minimum Requirements
Because invoice factoring exists outside the world of credit, there’s no credit check involved and only few business requirements are made of your company. What they’re concerned with is the quality of the invoices themselves, not necessarily whether you personally have a great credit score.
- Your invoices must be free of liens
- They must not be more than 90 days overdue
- You should not be in active bankruptcy
- The credit rating of the invoice holder must be good
When you fill out the Bibby Financial application for invoice financing, they will ask you questions about the size of your company, the registered address, the number of employees, and the date of your incorporation, among others. So make sure you have all relevant information at hand before applying.
Bibby Financial Services Advantages and Disadvantages
There might be some other services Bibby Financial provides that would have some value for storm restoration companies but invoice factoring is definitely not one of them. Especially when you have the option of choosing Payost invoice financing instead.
Here are the advantages and disadvantages of choosing Bibby Financial invoice factoring:
- Relatively fast processing of your application
- Fast disbursement of funds once approved
- They fund up to 92% of the value of your invoice
- They claim to protect your privacy
- “Up to 92%” means most companies won’t get nearly that much
- They claim to provide “invoice financing” when they actually provide “factoring”
- Since they buy your invoices there is no way they can guarantee confidentiality
- Customer service is what you’d expect from a conglomerate
- Lots of fees hiding in the fine print waiting to pounce
“A bad strategy will fail no matter how good your information is”. - Bill Gates
Bibby Financial Services vs. Payost Comparison
Checking out the Bibby Financial website, you can’t help but be impressed with the range of services they provide. Virtually none of them, however, will help a storm restoration company like yours survive the waiting period utilities put you through.
The only one that’s remotely applicable is their invoice factoring. But if you have unpaid invoices being held by utilities, factoring them will bring far less than they’re actually worth.
Payost is designed specifically to help storm restoration companies and give them the ability to deal with the unique challenges they face. If you have outstanding invoices being held by a utility or other AAA credit rated company, Payost can help you through the following:
- Applying takes about 3 minutes
- We never conduct a credit check
- We can work with new companies
- We don’t buy your invoices like a factoring company does
- So we don’t inform the utility you sold their invoice
Payost is by far the best solution for companies with unpaid invoices being held by AAA credit rated companies. The amazing thing is you’ll be able to receive optimal value for your invoices every time.
Bottom Line: Should you try Payost?
There is something to be said for working with a company with global resources behind it. But Bibby invoice factoring is not the best choice for storm restoration companies experiencing cash flow issues. Payost is just as fast or faster than Bibby but it doesn’t compromise your company’s reputation the way factoring can.
Nor is our attention spread out over a hundred different services. We’re specialists and we pay your invoices—that’s it. We’re the faster, more cost-effective alternative to:
- Invoice factoring
- Business loans and lines of credit
- Bank financing
- And other forms of advance funding
If you have unpaid invoices being held by AAA credit rated companies, don’t compromise your future sustainability by selling them to a factoring company for less than they’re worth. Choose Payost instead and enjoy the best value with minimal fuss!