Invoice discounting enables you to release up to 90% of the cash value tied up in your sales ledger. As your company grows and sales increase so does the funding available to you.
It can be provided on a ‘confidential basis’, meaning your customers will be unaware of how you fund your business. Your business remains responsible for sales ledger management including invoice collections.
If your business has established procedures to process invoices and collect payments then funds can often be available the next working day. When the invoice is settled by your customer, the remaining monies minus any charges due by the factoring company are paid to you.
As with Factoring itself it is really important to look carefully at costs especially those behind the headline rates suggested.
In today’s market you might also consider protecting your business from bad debts as your sales ledger becomes a major asset as your business grows. Some factoring companies can provide this protection as part of your invoice finance agreement.
What businesses use Invoice Discounting?
Companies with efficient, well established credit control and sales ledger systems are most suitable, however there are some factoring companies that can provide the systems to simplify this process reducing the burden on your accounts team, getting funds in quickly .
Find out how much finance you can raise on 0843 596 1145
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