GE Finance

Our research identified that many businesses were unaware of factoring and invoice discounting products due to the low levels of advertising and promotion by the invoice finance industry. Our findings revealed that 80% of SMEs – Small and Medium Sized Businesses – that we spoke to, had not seen any advertising during the last year, for invoice finance products, whatsoever.

This led us to compile a list of the best known factoring companies that were most well known within the industry by asking a sample of SME businesses to name the first invoice finance company that they could think of.

The results were as follows:

42% – Could not think of a single invoice finance company!

24% – Lloyds TSB Commercial Finance

13% – RBS Invoice Finance

8% – Barclays Sales Financing

5% – Bibby Factors

3% – HSBC

2% – Close Invoice Finance

2% – Venture Finance

1% – GE

This list of factoring companies suggests a number of interesting things. First of all it is incredible that 42% of respondents were unable to name even a single invoice finance company. This supports our theory that the low take up of these products is, at least in part, driven by very low levels of awareness within the business community.

Secondly, just eight factoring companies were mentioned, of which nearly half of these are bank owned. This does not reflect an appreciation of the true spread of available factoring finance companies within the market. In fact there are some 46 members of the ABFA (Asset Based Financing Association) alone contributing to their industry figures and in addition there are a number of other reputable companies that are not members of the ABFA. Market awareness of many of these companies appears to be extremely low.

The lack of knowledge of the full range of factoring companies in the market means that customers are likely to be missing out on some of the best offers that are available.

If a business is seeking assistance with its cash flow through factoring or invoice discounting we would strongly recommend that they seek out other invoice finance providers, in addition to those on this list, in order to make sure that they are receiving the best deal from a factoring company that will suit them.

It would be great to hear our clients say they have no issues in working capital finance and challenges, and that solving cash flow problems is the least of their worries. Unfortunately we haven’t met one customer that seems to be comfortable sharing that with us.

Let’s look at the root of some of those working capital challenges; what are the problems, what caused the problems and then talk about why you are probably reading this… you want working capital solutions.

It’s of course great to have sales – and sales and profits are even better. In general when you have those you have the essence of a healthy business. But those are in effect what we could call paper transactions and it always comes back to 100 year old clichés such as ‘ cash is king ‘ and ‘the sale isn’t made until you’re paid ‘.

That cash is required for all those mundane things, paying suppliers, paying employees, and meeting your obligations on loans and leases.

Your challenge is typical, how you do create a flow of cash in the long term, as well as addressing short term bulges to ensure you have liquidity.

Naturally when you have a good handle on cash flow everyone views you in a positive light, most importantly your suppliers and lenders.

The solutions to cash flow challenges often come out of inability to plan or address the right type of cash flow solution. You run the risk of liquidity problems when you current assets aren’t able to be converted in a timely manner into cash – those assets are typically receivables and inventory.

There isn’t a day when we don’t run into a textbook type of working capital finance challenge – it’s as simple as requiring product to satisfy regular or new large orders, generating invoicing, and then waiting 30, 60 or 90 days for payment. That is the textbook challenge when we talk to clients asking us for assistance in solving cash flow problems.

So we have done a pretty good job of telling you what your problems and challenges are – let’s address some real world solutions.

At the core of working capital finance challenges are you inability to access business credit. We encourage all customers to seek Canadian chartered bank business credit when they are in a position to do so. Unfortunately many clients can’t meet business net worth, personal net worth, and liquidity ratios and covenants your bank might require. Also we strongly believe that inventory financing by banks in Canada is increasingly more difficult to achieve.

Don’t borrow – monetize. That’s the best advice and plan we set our with clients to solve cash flow problems. You could get a working capital cash flow term loan, but that just creates additional debt on your balance sheet. Instead, take those assets you already have on your books and monetize them – those assets are the previously mentioned inventory, A/R, and in some cases tax credits due your firm as well as unencumbered equipment.

Liquidity for those assets can be achieved by a receivable financing program, an asset based line of credit, or a short term bridge loan on an asset such as a tax credit or paid for fixed asset such as equipment. Many of these solutions are outside the chartered bank system in Canada and can be accessed by talking to a trusted, credible and experience Canadian business financing advisor.

Your ability to monetize your assets, keep suppliers paid and current and then having the ability to grow your business when you assess and consider monetizing assets into short term liquidity.

The GE brand has long been associated with quality home appliances but that doesn’t necessarily mean all their products belong to the A-list. Consumers, though, have somewhat high expectations from the GE product line, banking on solid reputation and impressive performance.

Getting to the GE water filter systems, the company flaunts a strong line-up of units beginning with drinking water filtration featuring reverse osmosis, dual and single stage carbon filtration, kitchen, bath and shower filtration, faucet mount, water pitcher and finally, refrigerator and ice maker filtration. Some of the advantages of getting a GE water filter emphasized on the GE website include better quality of life, convenience in easy twist and lock design filter replacement, protection from water contaminants, and savings.

One model in the spotlight is the GE GX1550F Smartwater Filtration System which has been the subject of many reviews. First, it is not as easy to install as claimed. Second, the manual explicitly instructs that the O-rings or nozzles be lubricated with food-grade silicone grease before attaching the filter and apparently, only GE has this type of oil. For a small tube plus shipping, it will cost you a bit more. Consumers find this very discouraging and have recommended that GE should have included the ‘grease’ in the package. Third, the filters don’t last for very long. Finally, some plastic parts easily break.

It looks like GE hasn’t perfected the water filters just yet. In the meantime, stick your options to other water filters who have already aced the tests. There are so many brands of water filtration systems so GE should not be among your top choices. But then again an innovative company like GE is bound to cover for all the pitfalls and come up with a much improved and honed version of the ideal home water filtration system.