When we look at providing invoice discounting to companies, often we will not look at individual debtors to your company, we will look to protect ourselves from the insolvency of your company and will work with you if you have a wide base of customers. Many banks and companies are now moving onto this model which they feel is a much safer way to lend money. Invoice factoring and invoice discounting since the credit crunch have become one of the leading ways that businesses can find working capital finance for their companies, as heavier restrictions on unsecured loans have been in place since the financial crash.įor banks and private companies, this is a much safer way to lend companies money, as the invoice acts as collateral for the advance payments. This allows you to invest in your business’ growth and it keeps your funds steadily coming in as opposed to having to wait for a customer to pay. The funds owed by a client can be released before the client pays, essentially giving you an advance on their payment, if you use invoice factoring or invoice discounting. Invoice discounting, much like invoice factoring, releases funds from your invoices before your client has paid, allowing you to grow and expand your business.īoth terms are talking about the same process, in part.
We understand that your relationship with your clients is of paramount importance to you and your business, and that is why our friendly collections team will work to ensure that relationship is looked after, ensuring future business for you and your company.
#Invoice factoring for startups professional#
The invoice will be collected by our friendly and professional experts which will free up more time for you to focus on what matters, running your business.This will be minus an agreed fee with yourselves. – When the invoice is collected by us, and your customer decides to pay we will then make the remaining balance of the invoice available to you. Depending on your business this can be anywhere from 70 – 90% of the original invoice. If you enable us to do this for you, we will then advance you payments upfront, whenever you invoice a customer for goods or services.This may vary for business to business due to what best suits your needs. We would come to an agreement with your company where our experts will manage your credit control and sales ledger for a fixed period or on a continual basis, whichever suits you best.If you were to choose our experts to collect your payments it would work as follows:
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