Invoice discounting

Invoice discounting provides your business with cash by allowing you to raise finance from the unpaid invoices owed to you rather than using the traditional bank funding

There is generally no intervention into your credit management systems and our involvement is not visible to your customer or debtor that invoice discounting is usually provided confidentially.

How does invoice discounting work?

Stage 1: You deliver goods or provide services to your client
Stage 2: You invoice your client and notify the invoice discounter
Stage 3: The discounter advances you the pre-agreed % value of the invoice normally the next day
Stage 4: Upon invoice payment, the discounter pays you the balance of the invoice after deducting their fees.

When to use invoice discounting.

For many companies, debtor balances are the largest asset within their balance sheets which often turn into cash at a much slower rate than the business would like, and may account for two or three months sales.

If you can answer yes to any of the following questions, then invoice discounting can assist your cash flow.

Do you need to sell products or services on credit?
Do you have to buy more quickly than you get paid?
Does your business have to hold high levels of stock which commits much needed cash?
Is further growth of your company restricted by cash tied up in unpaid invoices?

What are the benefits of Invoice discounting?

Using Invoice discounting you never need to have to go through the pain of renegotiating your facility - unlike the traditional bank overdraft.

Funds are available when you need them allowing you to focus on running your business, without the constant pressures that inadequate cash flow can bring.

Under an invoice discounting agreement, you keep complete control over your customer relationships, free to manage your own ledgers and chase your own debts.

Your customer will not be aware of the finance arrangement with the invoice discounting company.

Growing businesses, in particular, often find that invoice discounting is a more flexible source of working capital than bank loans or overdrafts, as finance is made available to your business in line with the growth of it's sales.

It is now widely regarded as the most effective way to finance Management Buy-Outs and Acquisitions, Cash Flow for business growth and corporate restructures without diluting equity.