Invoice financing (factoring) is simply the selling of your invoices or receivables at a discount to a “factor” for immediate cash. The discount is typically 5% to 10% or so of the value of the invoice. The factor makes their money by collecting the payments from your clients. It is an excellent way to finance a business without the worries and time spent going after standard bank loans.
What is Invoice Financing?
Invoice Financing releases cash currently tied up in outstanding customer invoices – ideal for funding expansion plans or improving your cashflow. There are two main types: factoring and invoice discounting.
With factoring we provide both funding and credit control. With invoice discounting only the funding is provided.
Invoice Financing Benefits
– Access to the funds held in your invoices within 24 hours so you don’t have to wait to be paid
– We aim to give you the best value we can based on your specific requirements.
– Outsource your credit control and sales ledger management to our expert teams or handle them yourself
– Our country-wide presence and relationship managers ensure we can give a more personal service
– Check your funding at all times with our 24/7 online management system
– Our confidential service means we won’t disclose you are using an invoice finance facility
- Security – Protect against customer insolvency with Bad Debt Protection
Did You Know?
- A company can have a few trade lines and make your business more flexible and efficiency.
- One line, multiple products for both import and export use.
- Now the Credit lines of up to 10 times the amount of security provided.
- It allows you to use Letter of Credit, Trust Receipt, Shipping Guarantee, Bills Purchase and Invoice Financing etc to meet your trading and business requirements needs.
- Up to 120days and Interest chargeable only when you use the line extended to your company.
- Absolutely hassle-free application process.