One of the main issues many customers come to us with is the worry that invoice factoring isn’t confidential. Yes, it’s a great way to maintain a fluid credit facility, but how is it going to affect your relationship with your customers? There’s no need to worry – there’s an easy solution that will ensure your company can benefit from all the perks of invoice factoring, whatever your industry, while nurturing your relationship with your customers.

The Benefits of Invoice Factoring and Confidential Invoice Discounting

Firms of any size, in any industry, can benefit from invoice factoring. Whether you’re the owner of a construction company looking to expand in the next 12 months or run a recruitment agency, the benefits for companies of all sizes are numerous. Confidentiality is key when it comes to your business finances, which is why invoice discounting may be a better option for some companies. Both invoice factoring and confidential invoice discounting offer your firm the same benefits:

  • Stable cashflow as up to 95% of the funds tied up in your unpaid invoices can be released to you, usually within 24 hours
  • The ability to purchase supplies for your business in bulk (meaning better prices)
  • Ability to stay on top of payments to contractors, staff and HMRC
  • Improving your reputation with customers, as your projects won’t be delayed by cashflow
  • Opportunity for company growth thanks to more fluid credit facility
  • No more bad debtor worries (if you add bad debtor protection)

These are just a few of the benefits invoice factoring or discounting could bring to your business, whether you’re in recruitment, construction, freight or any other industry.

What’s the Difference?

The key difference between the two is that with invoice factoring, the factoring company takes over your ledger management, meaning they become responsible for chasing your customers for invoice payments. For larger firms, this is probably the ideal choice, as who has time to chase late paying customers? However, if you’re running a small business or one in which customer relationships are your bread and butter (which could apply to businesses of all sizes), then you might wish to stay in control of those relationships.

Invoice discounting means you remain responsible for chasing customers for payment, letting you nurture your customer relationships in the way you choose. It also ensures your finances are kept completely confidential, so nobody will know you’re using a factoring company but you.

Customers Are Key

For most businesses, how they relate to customers is the key to success. Gain a great reputation with your customers and you’ll stand out from your competition. In a world where we’re increasingly connected, online reviews on Google, review sites and social media can make or break your business reputation, which is why you might want to stay in control of your customer relationships. Confidential invoice discounting lets you do this, while reaping the benefits of invoice factoring; it’s a win-win!

Maybe you’ve considered invoice factoring for your company in the past but were worried about confidentiality, or perhaps the idea of handing credit control over to someone else didn’t appeal. Whatever your concerns, now is a great time to find out more about confidential invoice discounting.

Here at Simply Factoring Brokers we are always 100% transparent, which means we’ll be upfront about our fees (and any commission we make), matching you with the best factoring company for your needs. To find out more, just give us a call today on 0330 134 2826; we’ll be happy to answer your questions. If you prefer, you can email us at online@simplyfactoringbrokers.co.uk.

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