Invoice Discounting 2017-06-06T16:34:44+00:00

Invoice Finance

  • Provides funds for growth
  • Immediate cash advance
  • Turnover from £25,000

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Invoice Discounting

As expert invoice discounting brokers, our advisors are on hand to secure the best terms for you. Our service is totally unbiased – we negotiate the best deal for you, not for the lender.

Invoice finance allows funds to be drawn from invoices almost as soon as they are raised. A company who uses invoice finance does not have to wait 30-90 days for payment, meaning their cash flow is greatly improved.

When the invoice is raised, a set percentage of the money due, up to 95%, is released to you immediately. The remainder is released when the invoice is settled, minus a small agreed percentage for the lender.

Invoice discounting tends to be most suited to larger firms and is designed to fund their entire sales ledger. Facilities are often set up on a confidential basis, meaning customers are unaware that it is being used.

Invoice discounting facilities allow the borrower to handle their own credit control, meaning you continue to deal with your own creditors. This can be important when trying to maintain a strong relationship, or when carefully managing a slight payment issue.

Lenders will be keen to understand the creditworthiness of the customers, as they will be less involved in the payment process. Due to the lack of control from the bank’s side, they will want to ensure the risk of running into issues later is as small as possible.

When looking to take out invoice financing, the lender will also look into your credit control systems. Without robust credit control, the risk of late or non-payment increases. For this reason, smaller, or new companies may be encouraged to proceed down the invoice factoring route.

  • Recruitment
  • Haulage / Logistics
  • Export
  • Wholesale
  • Construction
  • Manufacturing
  • Security
  • Printing
  • Plant Hire
  • Engineering
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How Invoice Discounting Works

  1. You send your invoice to your client and copy in your lender.
  2. The lender will then release the funds to you, usually the same day or within 24 hours.
  3. Your credit control team chases the payment as usual. There will be an expectation that the lender will be kept up to date with progress.
  4. Once the invoice is paid, your lender will release the remaining funds that are due to you.

Working With ABC Finance

We work hard to save you money. As highly experienced invoice discounting brokers, we are able to use our connections across the market to secure you the best terms.

We take the hassle out of finding the best invoice finance, by doing the hard work for you. We advise you every step of the way. From the initial lender meeting, through to completion, we work for you to ensure the process is simple and hassle free. We are totally independent and have no ties to any particular lender. As such, we can focus on finding the right deal for you, regardless of the lender. On top of this, we don’t charge for our service, meaning there are no broker fees to pay at the end of the process.

The Benefits Of Invoice Discounting

  • This type of borrowing is often far more cost effective than other funding options for cash flow management.
  • Your cash flow will improve as you will have almost instant access to the funds due, without having to wait for payment from the customer.
  • Invoice discounting can be completely confidential, meaning your customers will be unaware you are using it.
  • You manage your own sales ledger, maintaining credit control processes and keeping control in-house.
  • The products tend to be very flexible. As your business grows, the cash available in your facility will grow alongside it.
  • Business growth can often be accelerated due to improved cash flow.
  • Improved cash flow will result in you being able to pay your creditors sooner, often meaning you can negotiate price reductions as a result.

Is Invoice Finance Right For My Business?

If your business invoices clients on credit terms and has established credit control procedures in place, then invoice discounting could be for you. If cash flow holds back your otherwise profitable business then you could benefit by investigating invoice finance.

Companies with a turnover in excess of £250,000 tend to be most suited to confidential invoice discounting. Smaller companies may not have robust credit control systems in place and may benefit more from invoice factoring.

By receiving payment almost immediately once your invoice is raised, everything from payroll to paying suppliers becomes simple. The revolving funding line is designed to grow with your business and is naturally in tune with your busy periods.

When compared to other business funding options such as overdrafts, business loans and peer to peer lending, invoice finance is often the most flexible option.

Our lenders offer a 100% confidential service, meaning your customers will not be aware of the facility.

Bad Debt Protection And Other Add-Ons

Our invoice finance providers are able to offer full bad debt protection. Bad debt protection is designed to protect you from losses in the event of your customer becoming insolvent and failing to make payment.

There are several add-ons available to help protect your business, each of which has a cost. Our experts talk you through all of your options and the costs associated with each. We can help make the process simple and easy to understand.

Call Us Today Or Enquire Online

At ABC Finance Ltd, we know the invoice finance market fully and have relationships with all the top lenders. By working with us, you can access the whole market through one simple, quick enquiry.

We manage the whole process and you can leave the whole thing to us while we negotiate the most suitable terms for you.

Enquire online now or call us on 01922 620008 to get a free personalised Invoice finance quote.

Fast funding
money in your bank within 24 hours

High level of advance
up to 95% of invoice value upfront

Selective invoice finance
all invoices or even just one

Factoring or discounting
we help you to choose

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