What is Invoice Discounting?

In simple terms, Invoice Discounting, or Factoring as it’s also know, is a loan against your sales invoices.

Each time you raise an invoice for finished goods or services you can draw a cash advance to finance the day to day running of your business.

Example

Let’s say that you invoice £50,000 of finished goods or services each month and that your customers take 90 days to pay.

The sum owed to you as accounts receivable (debtors) would stand at £150,000 at the end of the period.

By using Invoice Discounting you could draw up to £45,000 each month, providing you with £135,000 of additional cash to pay your suppliers and meet the overheads of your business.

Who handles the Credit Control?

The size and complexity of your business will usually determine who has responsibility for credit control.  If your business operates its own accounting system and has an effective credit control function then we would leave it with you.

For other businesses, we provide a fully outsourced credit control function that would liaise with your customers to ensure that invoices are paid on time.

Who is responsible for Bad Debts?

As part of the set up process we would carry out a credit review to ensure that we are all comfortable with the risks associated with offering credit to your customers.

In most cases we are able to offer a bad debt protection policy to cover prolonged default of payment or customer insolvency.

What if my Customers are Abroad?

We can still help and provide Invoice Discounting if your customers are located overseas.

Our multi-lingual credit controllers are experienced in dealing with clients in all parts of the world:

• Europe
• USA
• Russia
• India
• China
• Japan
• Africa

Is Invoice Discounting Suitable for my Business?

Businesses that supply finished goods or contract services are most suited to Invoice Discounting.

These include:

• Manufacturers
• Transport & Logistics
• Construction
• Recruitment
• Security Guards
• Pharmacies
• Care Homes
• Body Shops
• Resellers & Distributors

Please contact us to find out if your business is suitable.

More help available now

Contact us today for an informal discussion and to find out how we can help.

Call our Birmingham office now on 0121 647 7600 or our Milton Keynes office on 01908 516300 or complete the call back form and we will call you.