The best factoring product?
Invoice Discounting can be also be known as Factoring, Invoice Finance, and Debtor Finance. No matter what name they use, its getting an advance on outstanding debtors, so business owners can avoid cash flow issues in Growth.
This Factoring product is not a collection agency. Therefore your business can retain its collections procedures. Invoice Discounting companies advance a percentage of the invoice. As a result normally up to 80%. This is similar to a loan. You receive the final 20% less fees, when the debtor finally does pay. So why would you want to have this type of facility?
Why would you want Debtor Finance.
Invoice Discounting can be a strong source of cash flow for growth. Imagine if you could get access to 80% of your debtor book in 24 hours. This could give you an advantage in buying power, putting on more staff, paying bills ahead of time for discounts, and flood the market with your products for extra growth.
Invoice Discounting is more expensive than traditional bank lending. However you pay for risk. Bank lending is often ridged, doesn’t move fast with your growth, wont look at a business under two years old, needs security of property in most cases, and takes time to get organised.
Invoice Discounting needs only a debtors ledger, with verified completed work, with a ranged of debtors, new or old businesses, will look at businesses with tax arrears, no securities, and most industries. Price wise, Debtor Finance works out to be around 3% per month. So organising of growth and margins is essential. Most business owners agree, that in order to grow they need money, to sacrifice some margin to get bigger is never the issue.
Invoice Discounting is not a facility to run your business for you. It asks for reports at the end of the month for reconciliations, it liaises with owners on new debtors and debtor limits, and assists sometimes in collection of larger debts.
Invoice Discounting can be a very powerful tool in business if used correctly. Trade Debtor Finance Consultants has been around since 2009 with 28 different lenders to choose from. Best of all you will receive an obligation free quote, in writing, with up to 4 options that suit your business, at no direct cost to your firm. Want to find out more about Debtor Finance, speak to the experts today.