Invoice Discounting belongs to the group of
working capital finance products known as invoice finance.
The finance
company, or discounter, provides funding against the outstanding sales invoices,
or accounts
receivable of their client. This can drastically improve the
cash flow of their client as they do not have to wait
for their customers, or
debtors to pay their outstanding credit terms invoices (their debts).
Instead, the discounter will provide up to
95% of the gross face value of the invoice to their client by way of
an early
payment, also known as an initial payment. The balance of the value of the
invoice is passed to the
client once the debtor pays the outstanding invoice.
Confidential invoice discounting ensures
that the debtors are not aware that their supplier is using a
financing service.
Indeed the supplier keeps full control of all the debt collection activity and
banks
any remittances received from debtors into a special account called a
trust account. To the outside world
this appears to be the suppliers own
bank account but the discounter has control of the bank account.
FREE ONLINE QUOTATION SEARCH REQUEST
Different Discounters have different
criteria but in general, In order to qualify for invoice discounting you
would
need to:
Have debtors that are businesses i.e. invoice finance is not offered to retailers
Sell on credit terms e.g. 30 days net
Sell products or services that are not easily disputable (we can help you determine this)
Have annual sales in excess of £200,000
You DO NOT necessarily need to be profitable of to have a positive net worth
Even if you don't meet some of these
criteria we may still be able to help you access other forms of invoice
finance
so please make contact with us to discuss the available options
Return to Invoice Discounting - UK Home Page
By contacting
Cashflow Acceleration Limited you are confirming your acceptance of our standard
Customer Terms and Conditions.
A printed copy will be supplied on request.
All calls may be recorded for training and quality control purposes.
Licenced by the Office of Fair Trading - Consumer Credit Licence Number 542656.
Members of the National Association of Finance Brokers and Specialists in Invoice Discounting