Invoice discounting is a financial product which can help a company achieve a positive cash flow solution by using the company's invoices as security for a loan. Normally 80% to 90% can be available against the sales ledger value of the invoice.
Unlike factoring confidential invoice discounting is only available to selected companies but the advantage is that the company's clients are unaware of the situation, credit control remains with the borrower and the company can decide which invoices it wishes to discount.
Not every SME can qualify. Our financial consultants will help you through this form of capital raising to ensure your business needs are met.
An invoice discounting facility generates funding against the sales ledger but with the significant advantage that the client is unaware that the facility is in place. Invoices are funded from 80% to 90% of their face value and when paid the cost to the entrepreneur may be only 3% to 5% of value
Most companies prefer invoice discounting to factoring as it enables them to maintain their existing relationship with customers, as well as being cheaper in terms of service charges. For those companies that would prefer their customers to be unaware of the facility then a confidential invoice discounting facility is the only option.
Ineligible companies are those with low turn over, single product sales or a single customer contributing more than 20% to the annual turn over. However, even in this situation funding can be achieved.
Presenting the application correctly can ensure the keenest lending rates as well as prompt responses to an application. To start the process click below to leave your information.