An alternative to the traditional overdraft, factoring or invoice discounting gives you money against your debtor book and not your personal assets!!


Welcome to our invoice finance area where you can learn more about managing your cashflow through financing your debt. Keeping the cash flowing is the most important part of any business, even more so in a recovering economy.

Having access to the money you are OWED allows you to:

  • Grab new opportunities
  • Bring plans to life
  • Buy new equipment
  • Pay staff wages and
  • Negotiate the best terms with your suppliers

Did you know?

It is estimated that late payments are costing UK businesses as much as £1.9billion a year.

Unfortunately, maintaining a regular flow of cash is often easier said than done. Especially with late payments holding you back.

Do you Qualify?

If your business is selling its products or services to another business on credit terms, invoice finance, often known as factoring or invoice discounting, could help.
It's a form of funding that releases cash tied up in a business's outstanding sales invoices.

How invoice finance works

By releasing funds tied up in outstanding customer invoices, factoring and invoice discounting gives you an immediate cash- injection and an ongoing supply of cash that grows in line with your sales.

FACTORING
Factoring - funding and collections



YOU
You invoice your customers for goods and services, and send details of the sales invoice to the factoring partner



Factoring Provider
On receipt of your invoice, the factoring provider will typically release up to 80% of its value within 24 hours of it being raised. The remaining 20% is held until the invoice is paid. They will undertake credit control on your behalf. This includes sending out statements and chasing customers until the invoices are paid



Customer
Your customer pays the factoring provider in full



Factoring Provider
The provider will now release the remaining 20% of the invoice value, minus a small fee

 


 INVOICE DISCOUNTING
ID = Funding only



YOU
You invoice your customers for goods and services, and send details of the sales invoices to your provider



Invoice Discount Provider
On receipt of your invoice, the provider will typically release up to 80% of its value within 24 hours of it being raised



YOU
You chase payment of the invoice.



Customer
Your customer makes payment into a dedicated trust account



Invoice Discounting Provider
The provider will now release the remaining 20% of the invoice value, minus a small fee

     
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