Factsheet

Supplier Invoice Finance Scheme(SIFS) for Argos

Overview of the Supplier Invoice Finance Scheme for Argos

HSBC’s Supplier Invoice Finance Schemes are

innovative solutions that aim to fund supply

chains for large buyers. They are designed to

optimise payment terms, reduce costs and

increase efficiency of cash flows.

HSBC is delighted that Argos have selected

us in making such a scheme available to

its suppliers.

This scheme will allow suppliers to immediately

discount receivables that have been approved

for payment by Argos, providing

cheaper and quicker access to funding against

these receivables at a very competitive cost.

This cost is normally lower than usual,

because Argos have removed many risks and

processes associated with conventional

funding facilities.

How the scheme will benefit you

Payment of receivables from Argos

can be accelerated by up to 75 days

Option to draw payment immediately after

approval of receivables instead of waiting

until the day of maturity

Option to draw only as much funding as is

required, up to 100% of the available funds

Any finance used is normally at a lower cost

than usual

The finance arrangement does not normally

conflict with other funding facilities you have

in place, and can provide an additional source

of working capital

Online access to view receivables that

have been approved for payment, providing

visibility which helps with cash flow

planning and provides early warning of

potential disputes

Access to a wide range of other HSBC

products to help support your business.

Commercial Banking

How Supplier Invoice Finance Schemes work

Supplier Invoice Finance Schemes are based

around the well-established principle of ‘reverse

factoring‘ whereby HSBC purchase approved

trade debts owed to you by Argos.

This form of finance is supported by an

‘Agreement for the Purchase of Debts’ and

does not require personal security from

company directors.

The following diagram illustrates how the flow of

information and funds occurs

HSBCTransfer

discounted funds to supplier

bank account

HSBC Process buyer

invoice file

Update funds available

Payment to HSBC

Buyer approved receivable file

Early payment selected

Early payment

Agreed payment due

Residual payment

Early payment offer

Goods sent to buyer

Buyer

BuyerProvides

payments on invoice due date

SupplierOffered funds

SupplierOffered funds

SupplierCash in

receivable

SupplierReceives balance

HSBCFunding advance

to supplier

HSBCReceives buyer

payment

Release retentions

You deliver the goods or services against an

approved order to Argos.

Argos will then notify HSBC electronically

of receivables that have been approved

for payment

HSBC make this information available to you,

along with the finance options, through an

online portal – Internet Invoice Finance

You can choose to draw up to the maximum

amount of funds allowable under the scheme

HSBC makes payment against the funding

request from you

Argos sends payment on agreed date

to HSBC

HSBC receives and processes the payment

Any funding advance made by HSBC to you

is repaid

Any residual amounts previously not already

advanced are paid to you

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What you can expect from us

Direct ongoing contact with key stakeholders,

including accounts payable, within

Argos

Remittance chasing 3 days before due date

Same day notification by e-mail and

Internet Invoice Finance of any newly

approved receivables

Same day notification by e-mail and Internet

Invoice Finance of any payments that are

received from Argos.

Pricing

Discounting Charge

This is a finance charge similar to a bank

overdraft rate. It is charged on any funds

you withdraw.

Money Transmission Charge

Our standard payment method is BACS.

This method is provided as a free option

For BACS payments, the finance

charge commences

– For customers who bank with HSBC, when

the payment is credited to your bank account

– For non-HSBC customers, when the

payment is generated

For same day value such as via Clearing

House Automated Payments System or

telegraphic transfer the charge is £7.50 for

customers who bank with HSBC and £25.00

for those who do not.

Service delivered

A supplier finance service supported by a

group of invoice finance experts by telephone

and online via Internet Invoice Finance

A dedicated SIFS team available via telephone

or Internet Invoice Finance

Help when you first take the service to explain

how it works

The expertise of an experienced office-based

support team at the end of the line who will

work with you.

Factsheet

The online system

You will be able to access the facility through

a bespoke online portal delivered through our

market leading Internet Invoice Finance system.

It is available 24 hours a day, 7 days a week and

protected by industry standard 128-bit encryption.

Through this portal you can

Withdraw early funding against

approved receivables

View incoming payments from

Argos

View a transaction history or reconcile

individual accounts receivable

Download a variety of reports to help keep

your accounting records up to date

Have visibility of future payment dates of

receivables from Argos.

hsbc.co.uk

Issued by HSBC Bank plc HSBC Invoice Finance (UK) Limited Farncombe Road Worthing West Sussex BN11 2 BW

Designed and produced by Purewhite Creative Limited, London HSBC Bank plc 2009. All Rights Reserved.

For more information contact the Supplier Invoice Finance Team on 0800 917 2966, fax 01903 825607 or email at Supplierinvoicefinancescheme@hsbc.com