Factoring
Debtor book factoring, also known as ‘Cash For Receivables’, will involve converting your accounts receivable into immediate cash (up to 90% of each invoice in certain circumstances). This solution is suitable whether your business is starting up or expanding fast.
You can also free yourself from the burden of running your sales ledger by passing over the responsibility for this and your credit control and your credit checking. You can then concentrate your efforts on what you do best – running and growing your business.
You can choose either a disclosed factoring service (where your customers know that you are using a factor) or a non-disclosed factoring service (providing total confidentiality for your funding arrangements).
Invoice Discounting
Like Factoring, Invoice Discounting involves the purchase of your sales ledger for the benefit of providing immediate cash against invoices (up to 90% of each invoice in certain circumstances).
The main difference is that, with Invoice Discounting you will retain control of your sales ledger and credit control functions.
In general, although there are exceptions, businesses that are suitable for Invoice Discounting are established and profitable, with a relatively healthy balance sheet and strong in-house credit control systems.
Invoice Discounting is also available as either a disclosed or confidential service.
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