The GFTM Payment Guarantee Scheme
What the scheme is for
The Payment Guarantee Scheme gives suppliers certainty over when they will be paid. It is designed for businesses whose customers are able to pay but often pay late. The supplier still does business with its customers in the usual way, but no longer has to rely on them paying on time.
Prior approval
Each customer must be approved by GFTM before invoices can be guaranteed. This allows GFTM to assess the customer and set a credit limit, so the supplier knows in advance how much can be covered. Approval is based mainly on the strength of the customer, so new and established suppliers can both use the scheme.
Customer confirmation
Before an invoice is guaranteed, the customer must confirm that the goods or services have been supplied correctly and that the invoice is accepted. This confirmation is central to the scheme. It means GFTM guarantees genuine, agreed debts rather than invoices that may later be disputed.
What it costs
Pricing is designed to be straightforward. For most suppliers, the cost is expected to fall between 0.5% and 1% of the turnover put through the scheme. The rate depends on the customers involved and the payment dates chosen, and it is always agreed in advance.
How it fits together
The scheme sits alongside a supplier’s existing banking and finance arrangements. It does not replace them. GFTM manages the risk using live payment data, careful approval of customers and, where appropriate, credit insurance.
GFTM — a guaranteed payment date for suppliers.
Many late invoices are owed by customers who can pay. The problem is timing, not solvency.
The Payment Guarantee Scheme gives a supplier a fixed date by which an invoice will be paid. The supplier assigns an approved invoice to GFTM and selects a guaranteed payment date of 30, 60, 90 or 120 days. If the customer pays before that date, GFTM passes the payment on to the supplier. If the customer has not paid by the selected date, GFTM pays the supplier the agreed amount and takes over collection of the debt.
The scheme is not a loan. Unless the supplier also requests early payment, no money is advanced against the invoice. The supplier gains certainty over when it will be paid, and GFTM takes on responsibility for collection.
The scheme is not a loan. Unless the supplier also requests early payment, no money is advanced against the invoice. The supplier gains certainty over when it will be paid, and GFTM takes on responsibility for collection.
You choose the date. If your customer hasn't paid by then, we pay you, and the chasing becomes our job, not yours.
Guarantee Dates, Amounts and Fees
The fee depends mainly on the guaranteed date selected. Earlier dates carry higher fees, because GFTM is more likely to pay out and its capital is committed for longer.
The amount guaranteed is set invoice by invoice at between 75% and 100% of the invoice total, depending on the customer and the strength of the evidence. Where less than 100% is guaranteed, the balance is released to the supplier when GFTM receives payment from the customer, less any charges agreed in advance.
The fee is a percentage of the invoice value, agreed before the guarantee is given, and is payable whether or not GFTM pays out. A reduced fee applies where the customer pays before the guaranteed date. For smaller invoices owed by local authorities and other exceptionally strong customers, the fee may be nominal.
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Automated AI debt chasing
There’s more to debt chasing than just endlessly sending out the same emails again and again.
GFTM provides the best in class debt chasing software, all for free.
We will monitor your accounting package and send out chaser emails as and when debts become due.
But we are more than that: we will look at past relationships to gauge how we write. Loyal customers who may have slipped up are given a gentle friendly reminder. We look at past payment histories, and analyse whether chasing emails have been opened and read.
All of this done automatically. You simply choose which customers (if any) you would like chased, and we just get on with it.