LINK 44? Anyone heard of them

[YNWA]

One of my mates works for a telecoms company directly. However the company's invoicing is managed by a company called Link44.

My mate has his own Ltd Company and sends invoices to Link44 for processing. Link44 pays the invoice amount less £50+vat fee into his company account.

Anyone heard of such a practise, where a company charges just for processing a invoice payment?

Obviously my mate has to pay his accountant as well.

He asked me if I new anyone who could help find out more about Link44, or any orgainisation I could write to about how they are run?? I thought this forum would be a good plce to start.

Any thoughts?

[YNWA]

forgot to add....they are based in Cyprus

[MrsGoof]

I am aware of co's. that when going direct in fact push you to an agency who take a cut, sounds like a similar practice except you see pay the agency commission directly rather than through a rate cut.

[DaveB]

Sounds like they are a factoring co. Many small businesses use them to smooth out cash flow issues where customers dont pay immediatly on receipt of invoices.

If he submitted his invoice direct to the client then they may only pay in 60 or even 90 days. Submitting his invoice to the Factoring Co. they pay immediately and then pass on the invoice to the client themselves for the oustanding amount.

The fee he is paying is the charge from the factors for dealing with the invoices and paying him without waiting for the client to pay up.

[YNWA]

My mate works contracts at Aircom (Vodafone) which is not a small company by any means of imagination.

Shouldnt Vodafone be bearing the cost of the invoice processing?

[DaveB]

No, your mate is the small co.

Sceanrio 1.

He submits his invoice to Aircom. They pay in 90 days. He has to wait for the money. He is at the mercy of thier accounts dept. Ends up living on instant noodles untill he gets paid.

Scenario 2.

He sends his invoice to Link44. They pay within a week. He gets the money when he needs it. Lives on Moet and Beluga - He is a contractor after all.
Link 44 send the invoice to Aircom and get paid in 90 days.

Thats what he's paying the £50+VAT for.

[Xenophon]

No, your mate is the small co.

Sceanrio 1.

He submits his invoice to Aircom. They pay in 90 days. He has to wait for the money. He is at the mercy of thier accounts dept. Ends up living on instant noodles untill he gets paid.

Scenario 2.

He sends his invoice to Link44. They pay within a week. He gets the money when he needs it. Lives on Moet and Beluga - He is a contractor after all.
Link 44 send the invoice to Aircom and get paid in 90 days.

Thats what he's paying the £50+VAT for.

I'm currently getting my invoices paid in 6-10 days and yet I still have instant noodles every now and then. Oh dear.