Key for Selling More Invoice Finance Hong Kong


The secret to selling more invoice finance is extremely easy – listen to the customers and give them what they need.

Flexible Contracts – clients are often put off by extended contract periods and long periods of notice of termination. They respond to very brief termination periods, so they are not tied in if they decide to leave. In practice they seldom leave anyway, but if they do, they need a simple, simplified transfer process to support them in moving suppliers.

Reduced Cost version of bill discounting – many clients are comparing the expense of invoice discounting having an overdraft or loan. A low cost version of bill discounting would allow invoice discounters to recruit enormous numbers of customers which may otherwise use an overdraft or loan. Whilst the debate that invoice discounting releases more funds than overdraft is often true, the cost premium frequently makes it unattractive to the client.


Widen the pricing differential between factoring and invoice discounting – it often does not sufficiently reflect the significantly lower workload for the bill discounter that the client perceives invoice discounting to involve.

Separate Funding from credit limitations – increasingly the financing granted against debtors has become linked to the credit limit which can be composed on the debtor. This prohibits many clients from using sme finance hong kong, as credit limitations in the present climate are often inadequate to discharge enough funding.

Small Business pricing – to the smallest of companies i.e. those turning over less than 150K pas, even minimal service costs of 3K per annum are tough to afford. A lower price model for the smallest companies would open up a sizable segment of the marketplace.

No Premium for discerning products – some clients are interested in discerning invoice finance where they can pick certain debtors to get financing against rather than their entire ledger. A couple of financiers will allow this but it is often charged at a premium which puts off customers.

Modular Pricing – customers seem to enjoy the idea that they pay to get a core service e.g. financing and they can bolt on additional services, in certain cases for only the short term, such as collections support.

Remove Hidden charges – clients are often put off by the perception that there will be unexpected hidden fees – that could be addressed by simplifying the pricing strategy. Many clients find an all inclusive rate appealing.

These are some of the Issues that are obstacles to clients purchasing factoring and invoice discounting solutions. Hence they are partially responsible for the general contraction of bill financing client numbers. Some of these ideas May not be palatable from a statement finance firm’s standpoint but these are the things that clients appear to want.