Choosing the Right Invoice Discounting Company
Invoice discounting offers a different way of generating the money your business needs for expansion, working capital, new premises or any of the other many expenses that modern businesses face.
Banks, even with improving economic conditions, are still wary of lending to many businesses. At the same time, we know that bank business loans – with strict and often punishing repayment schedules, are not the ideal solution for many.
That is why we offer a different solution.
At Factoring Solutions, we know how difficult it often is for businesses – especially medium and smaller-sized concerns, to access the vital funds that they need and we offer free advice for whatever queries you have, no matter how small or large. We know this business and we want to use that knowledge to help you.
which invoice finance companies set low credit limits and refuse to fund anything over that limit
which invoice finance companies charge hidden fees that sometimes double what you expect to pay
Because we know:
we refuse to deal with these companies. ensuring you get the best deal possible!
Invoice Discounting Explained, and How Your Business Can Benefit
One of the main problems that many businesses have is a short fall between their expected income and the cash they actually have access to.
Unpaid invoices, whilst showing potential income, provide nothing until they are actually paid. Smaller businesses often find themselves trapped in a catch-22 situation, whereby they must wait weeks or months for invoice payment, but find themselves lacking the cash to expand – so they are unable to buy more stock to sell or lack the money to pay their own suppliers, for example.
This often leaves them working month to month, collecting just enough from their incoming invoices to just scrape by.
Many businesses experience a disparity between their expected income from unpaid invoices and the cash they have at hand.
As invoices can take a long time to be paid, this often leaves smaller and medium-sized enterprises short of the cash they need to expand.
This Is Just Where We Come In
Invoice discounting can take those unpaid invoices and unlock their value, giving you access to the funds you need.
Unlike factoring, the invoice discounting company will not collect the debts on your behalf or manage your sales ledger. Instead, they look over your unpaid invoices and lend you money against their value. They agree the percentage to lend upfront, and will give you the cash to push your business to the next level.
As your customers pay their invoices, these amounts go toward paying off the money lent to the business. In turn, this lowers what you owe.
You can then borrow again against new invoices and keep a healthy flow of cash going through your business with the invoice discounting company keeping the percentage agreed between you and them from the invoices.
The invoice discounting companies that we deal with do not believe in imposing punishing repayment demands or changing the rules halfway through the deal as – we want to help your business succeed. As long as your turnover is above £250,000 and you have the right records and paperwork, we can help.
In invoice discounting, you keep control of your credit control.
The Invoice Discounter lends your business an agreed percentage of your unpaid invoices, giving you the cash to use as you need.
As well as offering ready access to the money your business needs, there are also other tangible benefits to invoice discounting. For example, invoice discounting is normally confidential. This means your customers will remain unaware that you are borrowing against their invoices. At the same time, because you retain control of your sales ledger and collections, you can have the same close relationships with your customers, instead of having a third party between you and them.
As the factoring and invoice discounting industries have grown, so too has the number of companies offering sub-par service and deals.
At Factoring Solutions, we believe in providing the best service to you, our customers. This is because we know we would not be anything without you. We are all about building strong, long-term relationships that help your business grow. We are an independent broker, meaning that we are not affiliated with any factoring company. Therefore, you can rest assured that we always have your best interests at heart.
For an informal chat on invoice finance please contact us on 01827 707680 without any obligation whatsoever. We’ll discuss the various options open to you safe in the knowledge that we will only ever introduce you to one of the few discounters that offer high service levels. As we receive an introductory fee from whichever funder we place you with, we will never charge you any fees at all.