Invoice Discounting UK

Once the invoice has been issued how soon will I receive payment from my invoice financer?

Once you issue an invoice and log it on your sales ledger you could typically release up to 85% of the invoice value within 24 hours. So if you issue an invoice for £5,000 you could receive £4,500 by this time tomorrow. This allows you to put the cash where it is needed most.

Will my clients know I’m using a factoring service?

It is up to you whether you would like your clients to know or not. When one of the factoring providers advisors are chasing payment for an invoice they could call using your business name or the name of the factoring provider.

What is invoice discounting?

Invoice discounting is the service provided by many lenders and banks in the UK which allows small, medium and large business the ability to raise money from their unpaid invoices. Invoice discounting differs from the other invoice finance service offered to businesses called factoring because invoice discounting concerns only the provision of cash secured on the invoice and not the additional supporting services such as debt collection, ledger management and credit control and insurance.

Because of the basic nature of invoice discounting it is frequently used by larger companies from one million pounds turnover and upwards. It is usually used to generate working captial but can be used to help finance other purchases or requrements for cash release such as management buy-outs/buy-ins, equity release for retiring owners, capital projects and company restructuring.
Additional Services

Will factoring my invoices hurt my customer relationships?

No, in fact it can help your relationships. Your factoring of invoices enables us to provide a form of Quality Control for you. If your customer is dissatisfied or unhappy with your products or services, they are quite likely to tell us about it. We will relay these comments to you so you can take appropriate action to keep your customer happy. At the Invoice Bankers we are very mindful of the time and care you have taken to develop your client relationships.