Invoice Discounting Provides a Cheap Source of Finance
Invoice Discounting
In these testing economic times, sourcing credit has become difficult as banks, building societies and other traditional creditors are increasingly reluctant to lend. So when you really need that cash, and quick, where do you turn?
Invoice discounting is a cost-effective method of financing for businesses. It allows companies to leverage their accounts receivable to access immediate cash flow while maintaining control over customer relationships and collections.
Unlike traditional loans, invoice discounting doesn’t add debt to the balance sheet and is often considered a cheaper alternative because the financing cost is typically lower than other forms of borrowing. This makes it an attractive option for businesses looking to manage cash flow effectively and sustain growth without incurring high-interest expenses.
This product offers a unique approach to increasing the cash flow in your business without having to turn to traditional sources of finance such as bank loans, which are not always attainable.
The facility allows you to sell an outstanding invoice to a factoring company who will release up to 90% of the value of an invoice within 24-hours of its issue date.
It is then your job to chase up the payment from your clients, which is paid into a dedicated account after it has been received. The finance company will then release the other 10% of the funds minus a small fee.
As an independent broker, we can find you a great deal. So rather than scrimping and scraping and making ends meet until an invoice is paid, you can focus on growing your business and keeping your process running smoothly.
We can also help if you are looking to improve upon your current invoice discounting deal.
Invoice factoring services involve selling your accounts receivable (invoices) to a third-party company (known as a factor) at a discount. This provides immediate cash flow for your business instead of waiting for customers to pay.
Factors typically advance a percentage of the invoice upfront and then release the remaining balance, minus a fee, after they collect from your customers. It’s a valuable financial tool for businesses needing quick access to working capital without taking on additional debt.
What is invoice discounting?
What is invoice discounting?
This product offers a unique approach to increasing the cash flow in your business without having to turn to traditional sources of finance such as bank loans, which are not always attainable.
The facility allows you to sell an outstanding invoice to a factoring company who will release up to 90% of the value of an invoice within 24-hours of its issue date.
It is then your job to chase up the payment from your clients, which is paid into a dedicated account after it has been received. The finance company will then release the other 10% of the funds minus a small fee.
As an independent broker, we can find you a great deal. So rather than scrimping and scraping and making ends meet until an invoice is paid, you can focus on growing your business and keeping your process running smoothly.
We can also help if you are looking to improve upon your current invoice discounting deal.
Invoice factoring services involve selling your accounts receivable (invoices) to a third-party company (known as a factor) at a discount. This provides immediate cash flow for your business instead of waiting for customers to pay.
Factors typically advance a percentage of the invoice upfront and then release the remaining balance, minus a fee, after they collect from your customers. It’s a valuable financial tool for businesses needing quick access to working capital without taking on additional debt.
What is confidential invoice discounting?
Confidential invoice discounting is no different apart from the fact that the process is completely confidential, ensuring your debtors are completely unaware that you are dealing with a discounting broker. Not only will you be assured of an effective solution to your cash flow problem, this will be achieved without your customers ever knowing you had any trouble in the first place.
If you’re looking to improve on a current deal, have an adverse credit rating or simply want to improve your cash flow, give us a call to speak to an independent broker today.
Confidential invoice discounting is a financial solution that allows businesses to leverage their accounts receivable for immediate access to working capital without disclosing the arrangement to their customers. Unlike traditional factoring, where the finance provider manages collections, confidential invoice discounting enables businesses to retain control over their sales ledger and credit management processes.
Here’s how it works: businesses submit their invoices to a finance provider who advances a percentage of the invoice value upfront (typically between 70% and 90%). Once the customer pays the invoice in full, the finance provider releases the remaining balance minus a fee. This approach allows businesses to maintain confidentiality with their customers while improving cash flow, making it an attractive option for those seeking flexible financing without compromising customer relationships.
As an independent broker, we do all of that for you, quickly and expertly. Here’s how it works:
- You give us a call
- We discuss your circumstances
- We’ll know whether we can help in five minutes
- We scour the market on your behalf to find the very best deal
- You then receive up to 90% of the value of an invoice the same day it is issued
Finding an outstanding invoice discounting deal involves considering several key factors to ensure it meets your business’s needs effectively: Compare Rates and Fees: Research and compare the discount rates and fees charged by different invoice discounting providers. Look for transparency in fee structures to understand the total cost of financing.
Flexibility in Funding: Choose a provider that offers flexibility in funding options. Ensure they accommodate your business’s size, industry, and specific cash flow requirements.
Customer Service and Support: Evaluate the quality of customer service and support offered by the discounting provider. A responsive and knowledgeable team can provide timely assistance and address any concerns.
Confidentiality: If confidentiality is essential to your business, opt for providers that offer confidential invoice discounting. This ensures your customers need to be made aware of the financial arrangement.
Reputation and Reliability: Research potential providers’ reputations and reliability. Read reviews, seek recommendations from other businesses in your industry, and verify the provider’s track record of delivering consistent and dependable service.
So how do you find a great discounting deal?
So how do you find a great discounting deal?
As an independent broker, we do all of that for you, quickly and expertly. Here’s how it works:
- You give us a call
- We discuss your circumstances
- We’ll know whether we can help in five minutes
- We scour the market on your behalf to find the very best deal
- You then receive up to 90% of the value of an invoice the same day it is issued
Finding an outstanding invoice discounting deal involves considering several key factors to ensure it meets your business’s needs effectively: Compare Rates and Fees: Research and compare the discount rates and fees charged by different invoice discounting providers. Look for transparency in fee structures to understand the total cost of financing.
Flexibility in Funding: Choose a provider that offers flexibility in funding options. Ensure they accommodate your business’s size, industry, and specific cash flow requirements.
Customer Service and Support: Evaluate the quality of customer service and support offered by the discounting provider. A responsive and knowledgeable team can provide timely assistance and address any concerns.
Confidentiality: If confidentiality is essential to your business, opt for providers that offer confidential invoice discounting. This ensures your customers need to be made aware of the financial arrangement.
Reputation and Reliability: Research potential providers’ reputations and reliability. Read reviews, seek recommendations from other businesses in your industry, and verify the provider’s track record of delivering consistent and dependable service.