Factoring & Invoice Discounting - Debtor Finance
The term 'debtor finance' refers to factoring and invoice discounting products
These are flexible facilities that allow cash to be borrowed against invoices raised on credit terms to commercial buyers in the UK and overseas.
Factoring and invoice discounting can dramatically improve your cash flow by releasing money as soon as you have completed an order and raised an invoice rather than having to wait for your customer to pay.
Improved cash flow can create the confidence for you to tender for new business and start work on new orders without delay. You can settle outstanding bills promptly, improving your supplier relationships and possibly securing early settlement discounts.
And because it's linked to sales, debtor finance is ideal if your business does not have the financial track record or security available to negotiate sufficient overdraft facilities. This accessibility is often vital for new or growing businesses.
Another key advantage is flexibility. The amount you can borrow grows in line with sales and without the need for you to re-negotiate limits or pay arrangement fees. When combined with the higher advance rates generally applied by the factors, it is often possible for you to repay bank facilities and release previously pledged security. Some factors and discounters are also prepared to provide finance against other assets, or even unsecured loans, as part of a packaged solution.
Finally, factoring can provide you with a cost effective opportunity to sub-contract your sales ledger management.
We can help secure facilities within a matter of days for almost any business that expects to have credit sales to commercial buyers of at least £35k pa — regardless of financial performance.
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