Frequently Asked Questions

Different types of Invoice Finance and Factoring

Invoice Disounting
For established businesses, Invoice Discounting is the key. The business continues to receive customer's payments, manage their own sales ledger and credit control activities. We will give a prepayment facility on invoices of up to 85% and the balance when a customer pays. There are two options available:

• Confidential
  Discounting is provided for established profitable companies with a strong balance sheet and the arrangement is not disclosed to customers.
• Disclosed
  This service is provided for those companies whose balance sheets are not so strong, and our involvement is disclosed to customers. For many clients this facility develops into a Confidential arrangement, as the benefits of consistent cash flow take effect and profitable expansion gets underway.

Full Service Factoring
The main difference from Invoice Discounting is that we take over responsibility for running the sales ledger and handle collection. There are two options available:

• Recourse Factoring
  The same prepayment facility as with Invoice Discounting, without the burden of running the sales ledger, but with the knowledge that cash flow will be safeguarded through effective but sensitive supervision and collection. Considerable savings can be made in administration costs, such as sales accounting, stationery, postage, telephone charges, computer systems, staff time and other associated costs, by us looking after customer accounts through state-of-the-art computerised accounting systems.
• Non-Recourse Factoring with Bad Debt Protection
  All the benefits as Factoring and Invoice Discounting such as immediate advance of up to 85% of the face value of the invoice - with the balance when the customer pays - with the added advantage of 100% Bad Debt Protection. We all recognise that bad debts have a crippling effect on business, but this credit protection scheme will alleviate all worries.

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