Invoice Discounting
Invoice Discounting is one of the best solutions to a companies cash flow problems.
Invoice Discounting gives you an immediate cash injection against the value of outstanding invoices, then an advance of up to 90% of the value of an invoice as it is raised (this can go up to 100% in certain circumstances). The balance, less fees payable to the service provider, becomes available when the customer pays the invoice. Unpaid invoices become assets which are turned into cash.
With Invoice Discounting more funds are available to you immediately as your business grows.
Funding levels grow with turnover - which is ideal for a growing business.
Is invoice Discounting the best solution for you and your company?
Call today to speak to one of our advisors - we do all the work for you - at no cost to you! We will help you find the best solution for your company and advise if Invoice Discounting is right for you.
Invoice discounting is well suited to small, medium and large businesses with a turnover above £100k who are selling goods and services on credit to other businesses.
With Invoice Discounting the credit control function remains with you, the client, thus maintaining confidentiality. Your company retains full autonomy and control of the sales ledger, so sound credit control and debt collection procedures must be in place. This makes an invoice discounting facility very cost effective.
The cost of a facility includes a service charge plus the cost of money borrowed (i.e. interest).
Recourse (excludes bad debt protection) & non-recourse (includes bad debt protection) facilities can be arranged, with no minimum contract term.
Positive Invoice Finance can help find the best Invoice Finance facility for your company (either Factoring or Invoice Discounting) - Click Here For A Free Quote
We will go to market and find the best deal fo you and your company, giving you the time to do what you do best - run your company!
When you use Positive Invoice Finance as your broker you will not pay any more than you would if you went direct to the funder/ provider - in fact you will pay less due to the volume of business we introduce them!
Call or email us today!
Confidential or Non Confidential Invoice Discounting
Invoice Discounting is available as either Confidential Invoice Discounting or Non Confidential Invoice Discounting.
Confidential is where your customers and suppliers do not know you have an invoice discounting facility - your funders name will not appear anywhere on your invoices or paperwork.
Non Confidential Invoice Discounting is where your funders name does appear on your invoices and it is stated that the invoices are assigned to the funder.
Both are available and Non Confidential can be slightly cheaper in some circumstances.
Recourse or Non Recourse Invoice Discounting
Invoice Discounting facilities can be provided as either Recourse or Non Recourse.
Recourse is where the debt is not insured and if your customer does not pay, you or your company will be liable for the debt.
Non Recourse Invoice Discounting is Invoice Discounting that includes Bad Debt Proctection. With a Bad Debt Protection policy attached to your invoice discounting facility you have extra comfort in these difficult trading times. If one of your customer goes bust or does not pay you will not have to pay back the funds you borrowed from the funder against this customers invoices as the debt is insured.
Invoice Discounting Facilities can offer other bolt-on services such as Asset Finance, Bridging Finance, Back Office Services and so on. More details can be found at Additional Services
Invoice Discounting FAQs
Will Factoring or Invoice Discounting upset my customers?
A factoring or invoice discounting company needs to keep you and your customers happy. A factoring or invoice discounting company will work with you and not against you.
How much will factoring or invoice discounting cost?
Please call us and we will get you a quote from 3 different factoring or invoice discounting companies. We know the best factoring or invoice discounting providers for your industry.
Will I have to change my bank accounts with a factoring or invoice discounting facility?
No, you do not have to change your bank accounts with a factoring or invoice discounting facility.
How long will it take for a factoring/ invoice discounting facility to be set up?
A factoring or invoice discounting facility can be set up within 2 working days.
What will my customers think if I use factoring or invoice discounting?
If you use a confidential invoice discounting facility your customers will never know. Factoring itself is becoming more and more common and is preferred to an overdraft by many.
More FAQs Available Here
Invoice Discounting Case Studies
Distribution Company – Invoice Discounting
A distribution company in Boston was given an Invoice Discounting facility with a limit of £2.5m. The debtor book included contra’s and export sales and was highly concentrated as one customer made up 60% of the sales ledger. An overpayment facility was agreed from day one and the company grew steadily.
Label Manufacturer
A manchester based label manufacturer had been using invoice finance for business expansion.
The relationship with the existing invoice finance provider had deteriorated so the MD turned to his bank to help.
The bank was less than helpful so they turned to positive.
A funder that specialises in customer service and commitment to clients was introduced and a new facility was implemented within 2 days.
More Case Studies Available Here
