Metro Bank SME Finance have eradicated the cost of 'value days' for all new and existing customers. This is contrary to the majority of the industry who charge a value day amount, meaning that once a customer has reduced their borrowing balance, interest is still charged on the higher balance for a specified number of days. This adds significant cost to a customer's borrowing, but is rarely included on disbursement sheets.
Richard Saulet, Director of Metro Bank SME Finance, commented:
"This change demonstrates our commitment to providing clear and fair fees in a market where this has not always been the case. By eliminating value days, our customers will benefit from a substantial saving instantly. An average customer with an annual turnover of £6.7 million, being charged 3% would pay an additional £3,865 per annum with a lender who withheld value for debtor receipts over a five day period. I would strongly encourage all businesses who use invoice finance to challenge their lender and check when they receive full value for their debtor receipts. "
Alongside this change, Metro Bank SME Finance is also launching a new contract which removes termination fees. The ground-breaking contract provides customers with certainty of funding for a 12 month term, whilst simultaneously allowing them to give only 28 days' notice should they wish to leave early, without incurring any termination fees. The contract additionally includes a substantially reduced 'collect-out' fee, charged at 10% of the outstanding borrowing amount when applicable.
Saulet continued:
"By effectively killing termination fees and providing clarity around the amount of money customers would pay in the event of a collect out, we are making a substantial and long term commitment to the market."
