PAYMENT GUARANTEE SCHEME
Many late invoices are owed by customers who can pay. The problem is timing, not solvency.
Prior approval
Customer confirmation
Not a loan
WHAT THE SCHEME IS FOR
The scheme is for businesses whose customers can pay but often pay late. You keep trading with your customers as usual, but no longer rely on them paying on time.
YOU CHOOSE THE DATE
30, 60, 90 or 120 days
Assign an approved invoice to GFTM and choose a guaranteed payment date. If your customer pays before then, GFTM passes the payment straight on to you.
IF THEY DON'T PAY
We pay you, and the chasing becomes our job
If the customer has not paid by the chosen date, GFTM pays you the agreed amount and takes over collection of the debt. You are paid on the day you chose, whatever your customer does.
Not a loan
Nothing is advanced against the invoice. Unless you also ask for early payment, no money changes hands until either your customer pays or the guaranteed date arrives. There is no interest, no facility and no security over your other assets. What you are buying is certainty of date.
The chasing is ours
From the moment an invoice is guaranteed, GFTM monitors it and chases it. Reminders go out as the due date approaches and after it passes, in a tone that reflects the customer’s history. Once the guaranteed date has passed and we have paid you, the collection is entirely our concern.
Your customer relationship stays yours
The customer keeps trading with you in the usual way, on the usual terms, and pays as it always has. The only thing that changes is who is waiting.
DATES, AMOUNTS AND FEES
Pricing is designed to be straightforward, and the rate is always agreed in advance.
What it costs
For most suppliers, the cost is expected to fall between 0.5% and 1% of the turnover put through the scheme, depending on the customers and the dates chosen.
The date you choose
The fee depends mainly on the guaranteed date. Earlier dates carry higher fees, because GFTM is more likely to pay out and its capital is committed for longer.
The amount guaranteed
Set invoice by invoice at 75% to 100% of the invoice total, depending on the customer and the strength of the evidence. Any balance is released when the customer pays, less charges agreed in advance.
When the fee is paid
The fee is a percentage of the invoice value, agreed before the guarantee is given and payable whether or not GFTM pays out. It is reduced if the customer pays before the guaranteed date, and may be nominal for smaller invoices owed by local authorities and other exceptionally strong customers.
HOW IT FITS TOGETHER
The scheme sits alongside your existing banking and finance arrangements. GFTM manages the risk using live payment data, careful approval of customers and, where appropriate, credit insurance.
0.5–1%
75–100%
30–120 days
AUTOMATED DEBT CHASING
GFTM monitors your accounting package and sends chaser emails as debts fall due. It looks at past relationships to set the tone, so a loyal customer who has slipped up gets a friendly reminder. It reviews payment histories and whether chasers have been opened and read. You choose which customers, if any, are chased, and it runs automatically.
