Supplier Invoice Finance Scheme (SIFS) for Argos

Whoisprovidingthesefacilities?

Argos has joined forces with HSBC Invoice

Finance (UK) Ltd to provide this innovative

solution called a Supplier Invoice Finance

Scheme.

HSBC Invoice Finance (UK) Ltd has been

providing funding solutions to businesses similar

to your own for over 45 years and currently has in

excess of 6000 clients.

HSBC Invoice Finance (UK) Ltd has been globally

voted ‘Best Factor’ again for the year 2011. Our

clients are surveyed monthly by an independent

company and we consistently achieve over 90%

satisfaction with the service we provide.

DoIneedtosignanyagreements?

Yes, you need to sign an ‘Agreement for the

Purchase of Debts’ with HSBC. This allows you to

sell us the receivable you have issued to

Argos, and we can then provide funding to

you against them.

HowdoIcommunicatewithHSBC?

Supplier Invoice Finance is delivered via an online

solution we call Internet Invoice Finance, which

holds a wealth of information on our services and

your facility with us. You can use it to view and

withdraw available funding, monitor receipt of

payments, and contact us via a secure messaging

system. Naturally, there are also other channels of

communication with our team such as telephone

and email.

Whatarethechargesforthisprogrammeandhowdotheyapply?

The charges for this programme are as follows:

Discounting Charge

This is calculated as a margin over Base Rate/

LIBOR. This takes the annual discounting charge

and applies this rate to the funding requested

adjusted for the period of time to maturity (when

Argos has promised to pay).

When withdrawing funds by using BACS

payments, the discounting charge commences

– For customers with an HSBC bank

account, when the payment is credited to

your bank account

– For non-HSBC customers, when the payment

is generated.

CommercialBanking

FrequentlyAskedQuestions

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Money Transmission Charge

Our standard and free payment method in the UK

is by BACS.

However, if you require same day UK value

by telegraphic transfer the charge is £7.50 for

customers with an HSBC bank account (payment

taken via Internet Invoice Finance) and £25 for

non-HSBC customers.

Howdoyougetmyreceivables/invoices?

After you have sent your goods to Argos

and they are approved as a receivable for

payment, Argos sends them electronically

to us.

We then process these to make funding available

to you.

HowdoIknowifmyreceivableshavebeenapproved?

The approved receivables are displayed on

Internet Invoice Finance. You can then draw

funding against these.

HowquicklycanIreceivefunding/earlypaymentfromHSBCagainstapprovedreceivables?

You can request a payment immediately on

Internet Invoice Finance and this can be with

you on the same day if required. This will incur a

same day payment cost otherwise the payment

can be requested via a free BACS transfer, which

will be with you in 3 days’ time.

HowmuchofthereceivablevaluescanIdraw?

We have the ability to provide funding up to

100% of the VAT inclusive receivable value.

In practice, based on the factors such as ongoing

returns and/or debit note levels with Argos

we will provide funding between 70% and

100% dependant on individual circumstances.

If we provide funding at less than 100%, the

remainder will be transferred to you at maturity

date, when Argos pays.

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DoIhavetodrawallmyfunding?

No, you can choose how much funding you take

from the date we make funding available on

Internet Invoice Finance.

CanIdrawfundingatanytimeofday?

You can request funding at any time of day,

however there is a cut-off for UK payments

to HSBC bank accounts of 9pm (3.30pm to a

non-HSBC bank account). If the request comes

after the cut-off then the payment will simply be

processed the next day.

WhenwillIbepaidifIhavenotbeenfundedwith100%ofthereceivablevalue?

As part of this scheme Home Retail Group has

promised to pay us on the due date displayed on

Internet Invoice Finance.

DoesArgoshave to pay on theday they have promised; thematuritydate?

Yes, Argos does have to pay on the date

they have promised. If payment is not

received, the discounting charge we levy will

continue until the account is settled.

Whowillpayme?

As HSBC have purchased the debt from you,

Argos will pay us whether or not there

is funding taken against the receivables.

We will then transfer either all or the remainder

of funds you are due, dependent on how much

advance funding you have taken.

HowwillIbepaid?

We will transmit payments by BACS to your

nominated bank account.

Howmightthisschemeaffectmyexistingfundingarrangements?

Existing lenders could fall into a number of

categories, but importantly they may have a

legal charge over the debts owed to you by

Argos via instruments such as a 'debenture',

fixed charge’ or ‘assignment’. We may

require a waiver or other type of document

to allow us to purchase the debts, and this will be

discussed when we set up the facility.

WhodoIcontacttotalkaboutSupplierInvoiceFinanceSchemes?

Please contact our dedicated team either by phone

on 01903 825061 or by fax on 01903 825607 or

email at Supplierinvoicefinancescheme@hsbc.com

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FrequentlyAskedQuestions

hsbc.co.uk

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

Designed and produced by Purewhite Creative Limited, London HSBC Bank plc 2009. All Rights Reserved. AC21445.

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