Turn outstanding invoices into cash in 24 hours with invoice discounting
finance...
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Release up to 90% of outstanding invoices within 24
hours
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Pay bills
quickly and benefit from supplier discounts
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Ongoing facility that grows with sales volume
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Maintain existing credit control
Outstanding invoices can have a serious impact on cash flow effecting your profitability
and growth potential.
Invoice Discounting improves cash flow by supplying immediate cash against the value of your outstanding
invoices. As you raise an invoice, up to 90% of the invoice value is paid to you within 24 hours. The remaining 10%
is paid to you once your customers pay, less a small service fee.
Wine merchant enjoys new lease of life after invoice discounting...
A small supplier of quality
fine wines required cashflow funding after making a considerable loss in the
previous trading year due to late payment of orders.
Although the company had a full order book and efficient accounting systems, the owner was
ready to retire and sell out at a loss. An invoice discounting facility was arranged with a
major UK lender just 8 working days after the initial contact. Pressure on cash flow
was reduced which enabled the business to invest in new markets and increase turnover by 22%
over the following 12 months trading.
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A flexible source of cash that automatically grows with your sales...
Once in place, Invoice Discounting gives your business access to a fast and reliable source of cash directly
linked to your sales.
Unlike traditional bank finance which has to be regularly negotiated, invoice discounting is linked to your
sales ledger and grows automatically with your sales. So you always have access to cash when
needed rather than being limited by a fixed ceiling facility.
Swimwear manufacturer secures deal with overseas supplier...
A swimwear manufacturer discovered
a source of discounted materials from an new overseas market but with strict net monthly
terms.
The managing director expected the new supplier to result in an 8% improvement in margin per annum.
However, the cash flow pressures caused by strict trading terms required a finance facility which
would be more flexible than their current overdraft. A confidential invoice discounting
agreement was recommended which, at a 85% prepayment, released £785,000 working capital into the
business which proved vital in seizing this excellent opportunity.
After six months working with the new supplier all payments have been met by the increased facility
and the company has achieved in excess of 11% increase on gross margins so far.
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Retain full control of your sales ledger and credit control...
Invoice Discounting offers all of the cashflow benefits of invoice factoring but without the need to hand over
control of your sales ledger and existing credit management. You are free to manage the issue and collection of all
trade debts.
Therefore, customers will continue to settle invoices direct with you and be unaware of the
finance arrangement.
Invoice finance enables electrical distributor to grow...
A Manchester-based electrical
business was set-up in September 2001 and the founders met various bank managers prior to
trading to see how they could help fund the business.
No one demonstrated the flexible approach and understanding provided by our funding partners and
within a few days they had an offer on the table which was accepted.
The business started trading on 1st September 2001 and some stock was purchased towards the end
of August, with the bulk bought in September and paid for in October. Stock was funded by an
invoice finance facility paying 80% on invoices enabling the business to maintain the cashflow
needed.
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Top five questions about invoice discounting finance...
If you have a question about invoice finance that is not answered here, please complete the enquiry form on
the contact us page.
- How are Invoice Discounting and Factoring different?
Factoring includes a full
sales ledger and debt collection service that is disclosed to your customers as they pay the finance
company when settling an invoice. With invoice discounting all sales ledger and debt
collection activities continue to be managed by you and is undisclosed to the customer.
- How much does Invoice Discounting cost?
You will pay an interest charge
for cash advances comparable to normal secured overdraft rates and a service charge of
around 0.1% to 1% of annual turnover.
- Is Invoice Discounting available for start-ups?
Most
businesses whether a start-up or large established company can use invoice
finance. Provided that the business is selling on credit terms to trade customers and has an
anticipated turnover of at least £50K pa.
- How quickly can Invoice Discounting be arranged?
A facility can be established
within days but typically takes 7-10 working days.
- Are there any fee's to pay?
Other than the normal facility charges there are
no fee's. We do not charge any fee's for our service.
Contact us for free invoice discounting advice without obligation...
Whether applied to developing new markets, taking advantage of supplier discounts or increasing stock levels,
invoice discounting can help you manage cashflow and the financial demands on your business more predictably.
If you've found it difficult to secure invoice finance to suit your needs, have been turned down by your bank or
had credit problems - complete the form below without cost or obligation.
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Get paid for invoices within 24 hours
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Maintain credit control
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Flexible cash supply that grows with you
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Submit your priority invoice finance enquiry
here...
Please complete the form below and an adviser will contact you within 24 hours to discuss
your invoice finance needs without cost or obligation. Your details will only be used
to contact you about your finance enquiry and are protected by the Data Protection Act.
Thank you for your interest in invoice discounting.
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