29 Sep Santander UK and Pay4 Partnership Update
We are delighted to report that Pay4’s agreement with Santander UK, which allows Santander Relationship Directors to introduce the Pay4 product to its business clients, has now been running for more than two years. It’s been a success for everyone involved so we thought we would share an update on it with you.
Santander UK has partnered with many quality independent 3rd parties to offer their customers beneficial products and services that they don’t offer themselves. By referring the Pay4 product, Santander offers greater flexibility in the provision of working capital solutions to its commercial customers.
How does Pay4 complement existing Santander commercial finance?
Pay4 offers a revolving credit facility for growing UK Business to pay for any goods or services. The facility isn’t secured against business assets, so works well alongside other finance. It’s specifically because of the insured nature of Pay4 that it can sit alongside existing finance facilities without disrupting the customer’s relationship with its Bank.
How does the partnership work?
Pay4 is recommended to Santander’s Business and Corporate clients when the Pay4 product can be a beneficial finance facility to support the client’s working capital needs. There are a range of reasons why an insurance backed facility like Pay4 would work alongside the Banks existing products and Santander’s Relationship Directors are experienced in placing our product with the right businesses.
Key features of the Pay4 facility
For our clients, funding is accessed by paying supplier invoices via an online platform. Funding can be used to pay for almost any goods or service both in the UK and worldwide, so it’s incredibly flexible. Not only that, but it’s revolving, meaning that it can be used, repaid and reused again.
Facilities range from £50K to £1m+ and are ideal for established and profitable companies.
One of the key features which our clients have found to be extremely beneficial is that there a no costs incurred at all unless the facility is used. The only fee is a competitive transaction fee that is based on the value of the invoices you pay and how long you require before paying back the funds.
Pay4 customers rarely use the facility just once. There are so many ways it can be used in an ongoing capacity that it often becomes part of their overall financial strategy.
Our customers can use their facility to buy in bulk, to benefit from discounts otherwise not available to them. Or they can get early payment discounts from their suppliers by paying within days of the invoice being received. They can also use the facility when they have no customer invoices to be used against invoice finance, such as during their low season period, or while a large customer contract is still being negotiated. These are just some of the scenarios which lead to Pay4 being a useful enhancement to our customers working capital
Why did we partner with Santander Corporate and Commercial?
Santander Corporate and Commercial Banking was an obvious choice for Pay4. Their commitment to helping businesses secure the right finance to enhance their growth, and expand their operations was directly aligned with our own goals. Santander put their clients at the heart of all they do. By creating a new banking standard where client relationships come first, their values also mirror our own.
The measure of our success
In the last 12 months we’ve seen a 4000%+ increase in the number of transactions put through the Pay4 platform by our Santander-referred clients. These payments have helped these businesses: pay their suppliers, enhance their growth, smooth out working capital fluctuations, secure early payment discounts, improve competitiveness, reduce risk, and expand their operations.
With Santander as a key partner, we know we’re in an excellent place business wise. With our robust strategic partnership providing trusted referrals, we’re looking forward to many more success stories in the years to come.
Who can Pay4 support?
• UK based Limited Companies, LLPs or PLCs
• 3+ years trading history
• Turnover of £1.5m+
• Capital base £200k+
• Available to all sectors
• Revolving credit facility from £50k to £1m+
• No setup costs, no administration costs and no non-utilisation fees
• A simple source of working capital
• Settle invoices to suppliers in most currencies, worldwide
• Competitive transaction fees
• Minimum transaction size is £5,000 of individual or combined invoices
• Credit limits can be used, repaid and reused again
• Insurance backed. No security required against business assets
• Decision typically within 7 working days
• Works well alongside existing finance
The Santander-Pay4 partnership outline and product profile can be found on the Santander web site.