| Confidential Invoice Finance & Factoring |
|
Invoice Discounting enables you to confidentially raise funding from your unpaid invoices without waiting 30, 60 or 90 days to be paid by your customer. Invoice Discounting with delivers improved cash flow, and you also have the option to protect your business from bad debt. Most providers offer you the support of a personal Relationship Manager - whilst you continue to take responsibility for credit control in-house. How does Invoice Discounting work? With Invoice Discounting, you raise an invoice to your customer on your own company stationery, send it to your customer and then present the invoice finance provider with a copy for payment. The provider will give you up to 95% of the value of the invoice straight away. Your own credit controller secures payment from your customer, which is then paid in to your client account with the invoice finance provider. (Your customer has no idea that an invoice finance provider is involved.) Once the funds have cleared, the finance provider will send you the balance owed, less their fee. Invoice Discounting is ideal if you have an annual turnover above £500,000 and an established credit control function. It enables you to quickly inject capital into your business, without having to deal with banks or sacrifice equity. Why use invoice discounting?
If you've found it difficult to secure invoice finance to suit your needs, have been turned down by your bank or had credit problems then call Open 4 Business Finance today on Freephone 0800 0778987, or alternatively complete the contact form highlighted. FACTORING What is factoring The biggest asset of most businesses is its trade debtors. Using an invoice factoring service you can release up to 90% of the invoice value within 24 hours of it being raised. Factoring is designed for businesses with a turnover greater than £100,000. How factoring works Typically, you will issue your invoices as normal providing a copy to the factoring company who will then advance a percentage of the invoice value to you (usually 80%-90%). The factoring company issues monthly statements to your customers when invoices become due and ensures payment is received on time. Customers send their payments to the factoring company who pay the balance of the invoice value to you, less their facility fee, and update the sales ledger on a monthly basis. Unlike traditional Invoice Finance, Factoring provides a total sales ledger management service. This means that cash flow is maintained whilst allowing you to spend more time servicing your customers and building long-term, profitable relationships. Having agreed a sales ledger strategy with you, the factoring company will contact your customers for payment and chase unpaid invoices. This can be a huge benefit for smaller businesses that have fewer resources and need to spend more time running the business and generating revenue. Manage business growth with factoring Whether you are a new start business or you’re enjoying healthy growth and increasing sales, or you're considering expansion, unpaid invoices can really constrain your business. If you are thinking about expanding, the last thing you need is unreliable cash flow. This is where the right factoring provider can help you. It's a fact of business that many customers delay settling invoices for as long as possible. In many cases you may have to wait 60 days or longer before invoices are settled. This all adds up to bad news when you still need to pay your staff and suppliers on time. Without the right amount of cash flow when you need it, you may well have to divert precious resources to chasing payment when you should be chasing new business. Open 4 Business Finance Ltd has access to all the major UK primary and secondary invoice finance lenders and as such we are able to negotiate the very best deals in the marketplace on your behalf, leaving you to concentrate on managing a successful business. If you've found it difficult to secure invoice finance to suit your needs, have been turned down by your bank or had credit problems then call Open 4 Business Finance today on Freephone 0800 0778987, or alternatively complete the contact form highlighted. Back to Home |