Through a number of different reputable companies we are able to arrange:
- Invoice Discounting
- Confidential Factoring
Factoring is where the Finance company chase the Debtor book on your behalf, but it is disclosed to your customer that you are using a Factoring Company.
The Factoring Company will normally release 70-85% of the Invoice value up front to you, and release the balance (less their commission %) upon full payment of the invoice from the Debtor.
With Invoice Discounting, the finance company will release 70-85% of the invoice value up front, but in this scenario, you still chase the Debtors for the money. Once the money has been received at the Finance Company, they will issue the remaining balance of the invoice.
Invoice Discounting is mainly for businesses who have a good Accounts department and Client base, but a client base who have long payment terms.
Confidential Factoring is a Hybrid of the two above services. The only difference being that the Finance Company still chase the Debtors on your behalf, but this time it is not announced they are from a Factoring company, rather that they are a part of your business.
As a general rule of thumb, Factoring is the cheapest of these options, followed by Confidential Factoring and then Invoice Discounting
The information contained within these pages is for general information only and there is no comeback upon the author, or their business for any wrong advice
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