HSBC eFactoring Guide 2009

Your guide to the Internet Service for Factoring (eFactoring)

HSBC Factoring



HSBC Factoring

What Can Be Expect From eFactoring

A completely new eFactoring internet channel bringing with it new features that give the client more control of facilities held with HSBC.

It is an integral part of the Factoring, Post Dated Cheque Discounting and Confidential Invoice Finance facilities provided to HSBC’s clients in the Middle East.

The ability to create Available Funding and draw it on eFactoring when cashflow needs arise provides new flexibility.

eFactoring gives clients access to information and control over their facility in service timing which are:

0700-1800 Saturday-Thursday (UAE).


HSBC Factoring

Key Features

Secure login for each agreed user - ensuring transactions are traceable and onlyundertaken by AUTHORISED people.

Reconciliation of available and drawn funding - assists in the accounting of the facility.

View of current drawn funding and receivables sold to HSBC bank - giving greater controlover the facility.

Nominated HSBC bank account that CANNOT be changed by the eFactoring user – providingin built security.

Access to full sales ledger information on the customers notified to HSBC - providing a clearview of current and historical transactions.

Ability of client to drawdown funding for AED into the nominated UAE HSBC bank account - providing greater control and flexibility of cashflow requirements.

Downloadable on line reports - removes the delay in requesting information or having to wait to view it.

View exiting customers and have the ability to request new ones - providing more controlover this key area


HSBC Factoring

Who Should Use This Guide

Directors, Business owners and authorised signatories - so they know what controls are available to them and the individuals they nominate to use eFactoring.

Accountants, Chief Financial Officers and Finance Managers - as a way of training in how to use the system and understanding how to get the most from eFactoring and HSBC Factoring Services in general.

The ideal time to use this guide is just after you have received your user id from us. If you still have not registered please contact the Factoring Helpdesk to get the registration process started.

The Guide is designed to supplement the help you can get from the Factoring Helpdesk and your specialist Factoring Relationship Manager. If you are newly registered for the service the Helpdesk staff will make themselves available to talk you through the guide so that your training can be even more effective.


Visit our website at https://www.efactoring.hsbc.comVisit our website at https://www.efactoring.hsbc.comLogging In

HSBC Factoring Enter the User ID which begins with AEIF…. Enter the User ID which begins with AEIF….

You can also find the link to eFactoring on our web page www.hsbc.ae on the useful links list

You can also find the link to eFactoring on our web page www.hsbc.ae on the useful links list


Enter your password in the specified format.Enter your password in the specified format.

Enter your Memorable date in specified format.

Enter your Memorable date in specified format.

HSBC Factoring

Log On


eFactoring is the main delivery channel for your Factoring Facility. It provides full access to your account and a host of information relating to your account.

The menu to navigate around eFactoring is located on the left hand side of each page (after the log on page).The menu to navigate around eFactoring is located on the left hand

side of each page (after the log on page).

The Menu

HSBC Factoring


The Menu ExplainedPayments and Availability (Including Availability Movements)

Allows you to view your ledger (in total) and view retentions. Clicking on the retention figure will give a breakdown. Previous day’s figures are displayed as reconciliation between yesterday’s and today’s availability.

Message Centre Allows you to send and receive messages to us. Important to view each day, we recommend at least once in the morning and once in the afternoon.

Customer Accounts List Lists all customer accounts and from the drop down list may be filtered to show outstanding balances, balances in credit, overdue, disputed, queried, unprotected and in name order. Default is by balance ie. biggest account first. Clicking on individual customer names can access a breakdown of invoices outstanding in the customer account.

Customer Details Allows you to go direct to a particular customer account by inputting the relevant account number.

Customer Limit List A searchable list of all customers that displays current balance i.e. invoices outstanding, current limit and unprotected balances. .

Transaction History Provides details of transactions on the account such as customer payments, funding drawn, sales (invoices), credit notes notified and charges.

Customer Limit Status Displays recent credit limit decisions and requests to be actioned. .

New Customer Request Allows you to request a new Agreed Customer and Customer Account. .

HSBC Factoring The Menu Explained

EDI File Transfer This function is currently not available and cannot be used at the moment.


The Menu Explained

Sales and Bad Debts Provides a summary of sales invoices notified, cash collected, debt turn target and actual bad debts written off, split between protected and unprotected.

Help - Rules and Standards Provides Overview on Factoring supplementary agreement terms and conditions.

Select Another Account Used to navigate between ledgers should you have more than one.

Log Off Logs you out. It is important to do this as allowing the site to time you out can sometimes cause problems with re-entering.

HSBC Factoring

Report Request List Allows reports to be downloaded in a universal CSV format. Reports include Client Statement, WeeklyActivity Report, Aged Debt Report, Open Items and Customer List.


HSBC Factoring

Select An Account

If multiple accounts are held, click on the account number of the facility you want to open, to view it.

If multiple accounts are held, click on the account number of the facility you want to open, to view it.

ABC Trading Middle East LLC - USD A/cABC Trading Middle East LLC - EUR A/c


• eFactoring is HSBC's client facing system for Factoring Services.

• The welcome screen provides a snapshot of today’s invoices and credit notes received, and current availability. View the notice board for periodic useful notes.

• If the current availability shown here is in red with the word “Overpaid”alongside then it signifies that your outstanding funding has exceeded the availability.

• The system is available from 0700 to 1800 hours basis Saturday to Thursday

• Availability (funds available) is updated with previous working days transactions on each working day.

• eFactoring is HSBC's client facing system for Factoring Services.

• The welcome screen provides a snapshot of today’s invoices and credit notes received, and current availability. View the notice board for periodic useful notes.

• If the current availability shown here is in red with the word “Overpaid”alongside then it signifies that your outstanding funding has exceeded the availability.

• The system is available from 0700 to 1800 hours basis Saturday to Thursday

• Availability (funds available) is updated with previous working days transactions on each working day.

The Welcome Screen

HSBC Factoring

•This is applicable for PDC facilities only•This is applicable for PDC facilities only

Welcome to eFactoring

Our internet system is here to provide access to information, give you control of your Factoring facility and provide flexibility. We recommend you access the site regularly. For assistance please contact your HSBC Helpdesk on 04-423-7290 or email : [email protected]


Clicking on Retentions will take you to a breakdown of the retentions, whilst clicking on Availability(previous day) will take you to a reconciliation between the previous day’s figure and today’s.


HSBC Factoring

Payments and Availability



123 456789


HSBC Factoring

Retention

Retentions screen shows the amount retained as on given day. It represents invoices which are not considered eligible for creation of availability.

Retention's can include -

• Concentration CAP exceeded.

• Overlimits.

• Overdues beyond extension period.

• Verification is outstanding

Retentions screen shows the amount retained as on given day. It represents invoices which are not considered eligible for creation of availability.

Retention's can include -

• Concentration CAP exceeded.

• Overlimits.

• Overdues beyond extension period.

• Verification is outstanding


•This screen details the change in availability from the previous working day to the current working day. It is accessed by clicking on Availability on the Payments and Availabilitypage.

•This screen also features an explanation of the various factors that affect availability.

•A breakdown of the retentions is available from a link within the availability screen.

•This screen details the change in availability from the previous working day to the current working day. It is accessed by clicking on Availability on the Payments and Availabilitypage.

•This screen also features an explanation of the various factors that affect availability.

•A breakdown of the retentions is available from a link within the availability screen.

HSBC Factoring

Availability Movements


HSBC Factoring


•From this screen you will also be able to view the items received on the day. These items will update over night and will reflect the following day

•From this screen you will also be able to view the items received on the day. These items will update over night and will reflect the following day



HSBC Factoring


•For UAE AED clients you can elect same day payment or lodge a request for next day drawdown -subject to availability for funds.

•For other countries and currencies please refer to the Factoring helpdesk Tel +971 (0) 4 423-7290 or Email: [email protected]

•Payment method should always be selected for ‘transfer’.

•For UAE AED clients you can elect same day payment or lodge a request for next day drawdown -subject to availability for funds.

•For other countries and currencies please refer to the Factoring helpdesk Tel +971 (0) 4 423-7290 or Email: [email protected]

•Payment method should always be selected for ‘transfer’.


HSBC Factoring

Payment Confirmation

For UAE AED transfers, once you have requested your payment, which can only be transferred to your nominated bank account, the system will request your confirmation to ensure the details are correct - if not you can amend them at this point.

For UAE AED transfers, once you have requested your payment, which can only be transferred to your nominated bank account, the system will request your confirmation to ensure the details are correct - if not you can amend them at this point.


Message Centre

• The message centre allows you to exchange messages with us in a secure environment.Message types include:- Credit limit decision- New Accounts opened and

additional information requests- Queries and disputes - Notifications and resolutions- Messages from your credit

controller

• You can originate and respond to messages.

• Only opened messages can be deleted.

• It is important messages are reviewed and actioned promptly. We recommend reviewing them at least twice a day (at minimum once in the morning and once in the afternoon).

• Sent messages will only appear on the list until they are actioned, at which point they will be removed.

• Please note - do not use for urgent requests like transfer of availability.

• The message centre allows you to exchange messages with us in a secure environment.Message types include:- Credit limit decision- New Accounts opened and

additional information requests- Queries and disputes - Notifications and resolutions- Messages from your credit

controller

• You can originate and respond to messages.

• Only opened messages can be deleted.

• It is important messages are reviewed and actioned promptly. We recommend reviewing them at least twice a day (at minimum once in the morning and once in the afternoon).

• Sent messages will only appear on the list until they are actioned, at which point they will be removed.

• Please note - do not use for urgent requests like transfer of availability.

HSBC Factoring

A/c opened 000070 XYX Trading LLC


• Customer accounts are accessed either by entering the number in the Customer Details field or by using a link from the Customer Accounts List.

• The Customer Accounts Listmay be filtered down to show:

- Outstanding balance- In credit- Overdue- Disputed - Queried- Ineligible- In Name order

• A search is available using the In name order option.

•Classification shows customer accounts which are under litigation.

NB: The individual customer account screen may be accessed by clicking on the customer name (see over).

• Customer accounts are accessed either by entering the number in the Customer Details field or by using a link from the Customer Accounts List.

• The Customer Accounts Listmay be filtered down to show:

- Outstanding balance- In credit- Overdue- Disputed - Queried- Ineligible- In Name order

• A search is available using the In name order option.

•Classification shows customer accounts which are under litigation.

NB: The individual customer account screen may be accessed by clicking on the customer name (see over).

Customer Accounts List

HSBC Factoring


•This screen is accessed by clicking on an individual customer account.

• It provides invoice level breakdown of the individual customer debt.

• Trading history with the customer can be accessed from here.

• Filters are available to show:- Open Items- Open & Closed items (displays

the allocation of recent payments)- Disputed items

• Closed items appear in this list for 2 months after the item has been cleared.

• All items can be accessed to enable the whole account to be printed off quickly.

• Disputed or Queried items if present, are marked with a D or Qand clicking on them gives access to the details.

• A message centre note is always sent regarding a dispute or query please review these regularly and respond promptly with your findings.

•This screen is accessed by clicking on an individual customer account.

• It provides invoice level breakdown of the individual customer debt.

• Trading history with the customer can be accessed from here.

• Filters are available to show:- Open Items- Open & Closed items (displays

the allocation of recent payments)- Disputed items

• Closed items appear in this list for 2 months after the item has been cleared.

• All items can be accessed to enable the whole account to be printed off quickly.

• Disputed or Queried items if present, are marked with a D or Qand clicking on them gives access to the details.

• A message centre note is always sent regarding a dispute or query please review these regularly and respond promptly with your findings.

Customer Details

HSBC Factoring

EEE Trading


This displays the trading history and gives details of invoices and credit notes, and the date when the account was first opened.

This displays the trading history and gives details of invoices and credit notes, and the date when the account was first opened.

HSBC Factoring Trading History

EEE Trading


•A searchable, alphabetical list of all customers which displays current balance versus current limit.

•A useful screen to view the ineligible invoices which have affected the availability.

•A searchable, alphabetical list of all customers which displays current balance versus current limit.

•A useful screen to view the ineligible invoices which have affected the availability.

HSBC Factoring

Customer Limit List


•The Transaction History provides details of:

- Sales Invoice Notifications- Credit Invoice Notifications - Customer Remittances

Received- Returned Cheques- Charges- Funding Drawn

• Filters are available for each of these options.

• Data can filtered into individual months.

• Discounting Charges are applied at the end of the month, and thus cannot be viewed until then.

• Closed items appear on this list for two months after the items have been cleared.

• We recommend using the Account Activity Report (available on the Report Request List page) to update your own sales ledger.

• Use the Client Statementreport for your Receivable Finance accounting.

•The Transaction History provides details of:

- Sales Invoice Notifications- Credit Invoice Notifications - Customer Remittances

Received- Returned Cheques- Charges- Funding Drawn

• Filters are available for each of these options.

• Data can filtered into individual months.

• Discounting Charges are applied at the end of the month, and thus cannot be viewed until then.

• Closed items appear on this list for two months after the items have been cleared.

• We recommend using the Account Activity Report (available on the Report Request List page) to update your own sales ledger.

• Use the Client Statementreport for your Receivable Finance accounting.

Transaction HistoryHSBC Factoring


• Limit requests are approved by our credit approver in which case it will appear in decisions given. Requests awaiting decisions will remain in the pending section.

• Where a limit is fixed it is not possible to access the Request a Credit Limitscreen.

• All limit changes are notified via a secure message in the message centre. These should be viewed regularly.

• Limit requests are approved by our credit approver in which case it will appear in decisions given. Requests awaiting decisions will remain in the pending section.

• Where a limit is fixed it is not possible to access the Request a Credit Limitscreen.

• All limit changes are notified via a secure message in the message centre. These should be viewed regularly.

Customer Limit StatusHSBC Factoring


• Reports are downloaded in a universal CSV format which opens in excel, or similar spreadsheet programs.

• Requesting reports is a two stage process.

- The options are selected and on hitting the send button, the request is actioned

•Standard reports available are:- Aged Debt report (aged

analysis)- Customer List (list with

addresses and credit limits)- Client Statement - Account Activity Report

(provides allocation details of customer payments.

- Open Item Ledger (report by customer showing outstanding balance by invoice)

• Sample format of reports are provided here.

• Reports are downloaded in a universal CSV format which opens in excel, or similar spreadsheet programs.

• Requesting reports is a two stage process.

- The options are selected and on hitting the send button, the request is actioned

•Standard reports available are:- Aged Debt report (aged

analysis)- Customer List (list with

addresses and credit limits)- Client Statement - Account Activity Report

(provides allocation details of customer payments.

- Open Item Ledger (report by customer showing outstanding balance by invoice)

• Sample format of reports are provided here.

Report Request List

HSBC Factoring


Report Request List

•The report can then be downloaded and opened. •For more information see the FAQs at the end of this document.

•The report can then be downloaded and opened. •For more information see the FAQs at the end of this document.

HSBC Factoring

•Refresh the Report Request List panel, or come back to it afresh later, and the download button will be displayed when the report is available.

•Refresh the Report Request List panel, or come back to it afresh later, and the download button will be displayed when the report is available.


HSBC Factoring

Report Request

•Reports are viewable in Excel spreadsheet format.

•Reports are viewable in Excel spreadsheet format.

ABC TRADING LLC


Sales and Bad Debts

• Provides a summary of sales invoices notified, cheques discounted and cash collected.• Debt turn target and actual.• Also bad debts written off with a split between protected and unprotected.

• Provides a summary of sales invoices notified, cheques discounted and cash collected.• Debt turn target and actual.• Also bad debts written off with a split between protected and unprotected.

HSBC Factoring


HSBC Factoring

Help Desk

• Should you need further assistance -rest assured we will be on hand to help .

• Should you need further assistance -rest assured we will be on hand to help .


Frequently Asked Questions (FAQs)

How do I request a credit limit increase?

In Customer Accounts List click on the existing limit for the particular customer, or in the particular customer account click on the limit. This brings up the Request a Credit Limit screen. If the limit is fixed at the current level it will not allow access to the increase limit screen.

How can I see which customers have paid?

In Transaction History filter by Customer Remittances Received this brings up remittances received in the month so far. You can also filter for previous months (up to 12 months). In Customer Details (for a particular customer) select Open and Closed Items, this will show recent payments and allocation details. Allocation details are also supplied in the Weekly Account Activity Report, which is prepared and sent as a hard copy on a weekly basis. The report can also be downloaded via our Report Request List page.

How can I confirm if you have received my invoices and credit notes?

• For manual or post select Transaction History from the menu and then Sales and Credit Notes. This

shows invoices and credit notes received. • For help with preparing a manual or post batch refer to Help - Rules and Standards - Invoicing Your

Clients.

I have a query over the funds available

Review the Retentions figure by clicking on the Payments and Availability screen and also the Availability Movements screen by clicking on Availability. • Invoices subject to verification with your customer are shown as suspended within Retentions. • Once verified the funds will be made available the following working day. • Review your Message Centre to see if any invoices are queried or disputed by your customers. When

invoices are queried we send a message centre note and allow 48 hours for you to resolve before the funding is withdrawn. After 48 hours the funding is withdrawn. At this point a further message centre note is sent, please respond to these messages promptly with your findings.

• Service charge (%) is also posted the day the invoices are processed.



How do I get details of queried or disputed customers?

For a list of all queried and disputed accounts go to Customer Accounts List and filter by Disputed or Queried. Clicking on the Q or D on the relevant invoice can access details of queries and disputes. The message centre will advise you with details if they occur.

How do I know if any customers are over their credit limits?

Use Customer Limit List or when in Customer Accounts List filter using Unprotected.

How do I download reports to my PC?

See the Report Request List section of this guide for how to access the Download Report button. From here click on it and choose Save to download to your PC. The report can then be opened in Excel or a similar spreadsheet program. If this option is not available to you please contact Helpdesk Services on +971 (0) 4 423 7290 so we can reconfigure your download settings.

My reports don’t format correctly. This is because you’re viewing them in your internet browser. Instead download the report to your PC and view using a spreadsheet program.

My Customer Aged Balance report does not show Limit Details

You need to tick the box to select the option to include credit limit details when you are downloading the report.

Is it acceptable for more than one person (user) to use the same login ID?

No, each person (user) should have his or her own unique login ID. Should you need to arrange a new user please contact our Helpdesk (see below).

How can I request or modify user access to IIF?

Forms are available by calling Helpdesk services on +971 (0) 4 423 - 7290. They can be emailed or posted out to you. Once filled in you must post them back and your new number will then be issued. For changes to user access a primary user or company director must email us on [email protected] stating the changes you require. We will then email confirmation of the change once it’s been actioned.

How can I get extra reports?

Go to Report Request List a variety of reports are available to download. Further information can be seen in the related section of this guide.



How do I go to a particular Customer Account?

If you know the particular customer number enter it into the Customer Details field on the left-hand menu. If not use the Customer Accounts List where you can filter in different categories. Once identified click on the customer name.

How do I know allocation details of customer payments?

The Account Activity Report provides a breakdown (per invoice) of customer payments. We recommend using this for reconciliation purposes. A hard copy is sent weekly.

THANK YOU

HSBC eFactoring Guide 2009

Documents

frequently

debt turn

message types

universal

uae aed transfers

customer limit

credit limit

aged debt