Other types of finance: Invoice Discounting | Factoring and Sales Ledger Finance
An Invoice Discounting facility generates funding against the sales ledger in much the same way as factoring. The main difference is that the company retains responsibility for chasing their own ledger. This type of facility is available to companies that have excellent audit trails, and can demonstrate the ability to collect the debt in-house.
Many companies prefer invoice discounting because it enables them to maintain their existing relationships with their customers, as well as being cheaper in terms of the service charge involved. For those companies who do not wish for their customers to know of a third party involvement, a Confidential Invoice Discounting facility is the best option.
To complement the invoice discounting facility, a number of funders will also look at other assets within the business with a view to providing additional funding against plant and equipment, property and stock. This Asset Based Lending as it is known, can be particularly useful to fund seasonal stocking requirements, or to provide increased leverage in the short term to effect management buy outs.
All industry sectors will be considered. Please call 01245 392515 or contact us online.
Factoring and Sales Ledger Finance
Sales Ledger Finance is an extremely flexible form of finance, which grows in line with the growth of the business. Sales invoices are forwarded to the Sales Ledger Finance company who will immediately advance up to 85% of the invoice value.
Factoring is a means of releasing the cash tied up in your sales ledger.
Sales invoices raised for goods and services delivered to your customers
Copy sales invoices sent to the factoring company
The factor pays up to 100% of the invoice value within 24 hours
The factor manages the sales ledger, issues statements, chases the debts and collects payments from your customers
With over 70 factoring companies to choose from, we help you make the right choice for your business.
Our clients range from small family firms through to blue chip organisations. Funding has been provided from a few thousand pounds through to millions of pounds.
Please call 01245 392515 or Contact us online.