Cash flow funding secured against your sales ledger, providing the finance to help your business growth.
Factoring and Invoice Discounting are excellent alternatives to a traditional overdraft and give an immediate cash injection against the value of outstanding invoices, then an advance against the value of new invoices as they are raised.
The flexible nature of factoring and invoice discounting means you can borrow more as turnover increases without having to renegotiate. There are a variety of providers who will consider funding against a single invoice as a one-off transaction, through to full debtor book facilities.
Suitable for a wide range of industries including haulage, recruitment, manufacturing, distribution, service providers, engineering, export, franchises and the construction industry.
A Factoring or Invoice Discounting facility can also give you access to add-on products such as Asset finance, Stock finance, Trade finance and other structured finance options to consolidate funding needs. Some of these products are not stand alone and can only be used with a factoring or invoice discounting facility.
Factoring and Invoice Discounting enable businesses to fund their cashflow needs by advancing money against invoices raised. This means you don’t have to wait 30/ 60/ 90 days to get paid from a customer, you simply draw-down an agreed percentage of the invoice from your invoice discounting facility. When your client pays the invoice, the remainder, less any fees and interest, are reimbursed to you.
Who can get factoring and invoice discounting?
Any trading business which generate invoices for goods or services provided can take advantage of this type of funding line.
Yes, the majority of our clients who operate these types of facilities tend to be Limited Companies.
Rates and fees vary massively depending on facility size, amount of invoices discounted etc. All facilities are bespoke and rates can only be assessed upon application.
Once the invoice finance facility is established, the level of advance you receive against invoices depends on a number of things, but can rise as much as 100% of an invoice. Once the factoring facility is in place, there is no limit to the amount you can borrow as the level of finance is directly linked to the level of sales. So as your business grows, so does the amount of funding available to you
For as long as you require it, so the facility should grow in line with your business and isn’t tied to any particular term.