Factoring & Invoice Discounting
Unlock the cash from your current invoices immediately
Factoring
Invoice factoring is perhaps the most widely used form of invoice finance. Debt Factoring companies provide you with both the cash you need to grow your business and the back office staff to collect payments.
Confidential Invoice Discounting
If you are a larger business with good credit control, CID could be the way forward for your business by providing a substantial cash flow solution. Best of all, your customers never need to know about the arrangement as the facility can remain entirely confidential.
Specialist Access
Factoring & CID allows you immediate access to the cash tied up in your unpaid invoices so you no longer have to wait 30-120 days until you receive payments from your customers. This will allow you to negotiate better terms and pay suppliers on time.
We have access to a panel of established and reputable companies specialising in providing Confidential Invoice Discounting and Factoring facilities.
Raise Cash Quickly
If you’re looking to raise cash quickly through debtors but want to keep in control of your sales ledger, Invoice Discounting and Factoring is for you. This can be a great solution for growing businesses; as your sales ledger increases so does your credit line with the lender. This gives you the cash flow to grow with confidence.
How does Invoice Factoring work?
Raise an Invoice
Receive a Cash Advance
Grow & manage your business
Customer Pays outstanding invoice
Raise an Invoice – You raise an invoice to your customer, containing information on how much the customer needs to pay and in how many days.
Receive a Cash Advance – You send a copy of this invoice to the debt factoring provider, who will pay you a pre-arranged percentage of the invoice usually within a maximum of 24 hours.
Grow & manage your business – You now have the cash available to cover the costs of your next job and reinvest back into growing your business.
Customer Pays outstanding invoice – By factoring invoices, you will not have to do much else. The factoring company will collect the payment at the previously agreed date from your customer and send over the remaining value of the invoice you did not initially receive, minus pre-arranged fees.
Raise an invoice – You raise an invoice to your customer, containing information on how much the customer needs to pay and in how many days.
Receive a Cash Advance – You receive a pre-agreed percentage of the value of that invoice as a cash sum, usually within a maximum of 24 hours.
Grow & manage your business – You now have the cash you need to cover the cost of additional jobs, wages, materials and any other cash consuming aspects of your business.
Once the invoice falls due, the lender receives the payment from your customer. As this is a confidential facility your customer won’t need to know about that. You will then be forwarded the remaining value of the invoice you were not initially provided with, minus pre-agreed fees.
How does CID work?
Raise an invoice
Receive a Cash Advance
Grow & manage your business
Customer pays outstanding invoice
Invoice Discounting & Factoring
Both facilities provide your business with the chance to grow. It is important to know you have a credit line available to you that will grow as your debtor book grows.
Benefits:
Ideal for businesses that are growing
As your sales increase, so does your credit line with the lender
Provides immediate cash from the invoices you raise
Can provide Debtor Insurance protection to cover against bad debts
Fast online service provided by many lenders