Did you know that most businesses cease trading owing to cash flow problems and not due to lack of profits! Only 20% of companies that qualify for Debtor Finance use it. Unless your company is collecting its income it will not survive. Invoice Discounting is one solution to help our commercial customers meet the pressures on their banking facilities, tax demands & salaries.

If your company offers credit to your customers, then your company will have money owing for goods or services already delivered. Using an Invoice Discounting facility you can release the value tied up in trade debts and convert outstanding invoices into cash.

As a funding solution for your business Factoring and it’s ease of use gives all the benefits of Invoice Discounting. This is achieved by assigning your trade debts to an Invoice Discounting company in return for between 75% and 90% of total invoice values. Your business receives the balance, less service charges when your customer has made payment.

The total percentage of any issued invoice you receive upfront (the prepayment rate) is determined by the quality of the debt itself, i.e. the quality of your customers, the quality of trade debt proof and the strength of your business. Invoice Discount funding grows alongside your growth in sales. You continue to manage your own customer relationships, sales ledger & credit control.

You can use this facility on an undisclosed basis via a confidential invoice discounting facility.

Benefits of Invoice Discounting

• As trade debts are probably your biggest asset, releasing those funds via an invoice discounting or factoring facility allows you to focus upon and exploit new business opportunities.
• The facility can be disclosed to your customers or utilised confidentially.
• Invoice Discounting works alongside your existing banking arrangements.
• It is ideal for established and growing businesses, cash availability grows with your sales.
• Invoice Discounting solutions are a fast, flexible, efficient and effective source of accessing your cash at a competitive price. .

How the Invoice Discounting process works

• Your company supplies your goods / services to your customer and then issue an invoice for payment.
• You then update the invoice discount company.
• The invoice discounter then speedily makes available funds based on that invoice at the agreed rate.
• The customer then pays the invoice via an account you have with the invoice discounter or via your own account.
• The balance of the invoice less the agreed service charges is then released for your use.

Invoice Discounting is only one of the cash flow options we have available. We will discuss your requirements with you and agree the appropriate cash flow solution that meet your requirements.

Initial Information you will need to obtain an Invoice Discounting solution

1. Up to date Aged Debtor Analysis.
2. Up to date Aged Creditor Anaysis.
3. Last 3 years accounts or management accounts for a new company.
4. Sample sales invoice.
5. Sample contract if applicable.
6. Copy of VAT Certificate.
7. Copy of Certificate of Incorporation (if applicable).

If you are not sure whether your goods or services can benefit from an invoice discounting facility please contact us at any time for a free, confidential and no obligation discussion about your company