Factoring and invoice discounting allows a business to access cash that would otherwise be tied up in sales. Where a company has the inability to increase its cash-flow (often its overdraft) in line with sales, the result is often the loss of custom as well as profitability.
Managing their traditional borrowings more effectively.
Both Factoring and invoice discounting work on the same principle that it provides an immediate advance against sales, typically 80-85% of an invoice / ledger are advanced with the balance due minus finance charges once the invoice(s) are settled.
Factoring is ideally aimed at the new or relatively small business who would not only benefit from linking their finances to their sales but would be assisted by having their sales ledger managed as a part of the facility provided.
Invoice discounting is targeted at the business with an established accounting system who can demonstrate a good record of account management and who would require no assistance in the on-going management of the ledger.
This enables such a company to have their invoice discounting arrangements remain entirely confidential with their customers being invoiced directly and making payments to the company as usual.
The short answer is Yes! The market is vast and is covered by a mix of Bank and non-institutional providers, depending on your preference and immediate needs, we are able to provide the most appropriate form of domestic and export ledger finance.
Our relationship is one of independent broker thus our recommendations will be without bias, so whether you are seeking to discount a single transaction, a part or all of your sales ledger, we will endeavour to deliver the most effective solution to your cash-flow requirement.