Factoring – Some of these products are:
Single Invoice Factoring is where you can put in one invoice for finance. Once the factoring lender has verified the invoice, you will receive up to a maximum of 90%.
Due to its flexibility it has the highest fee charged per invoice. Using Single Invoice Factoring becomes very affordable with no lock in contracts. The availability to select your invoices keeps fees to those invoices funded only.
Full Service Factoring was created by lenders to suit small to medium businesses. Often these new businesses are without an accounts departments. Full Service Factoring provides the small business with the following departments. A Credit Department, Collection Department, Accounts Department, and Finance on invoices.
TDFC will make it obvious that the more service that is provided the more the overall costs are involved. Time is saved in most small businesses with Factoring.
Not having to chase your outstanding invoices is a bonus. Keeping and eye on debtors to avoid bad debt is essential. Watching limits and credit ratings is a must to young growing companies.
If your firm has a full time book keeper or accountant then partnership factoring is best suited for your firm. There was no need for the Client to have a factoring company chasing invoices, setting credit limits, or account management. Partnership Factoring means the client needs less servicing and therefore only needs a finance facility.
This facility being the cheapest factoring facility in the finance industry as clients submit invoices and get funding only. In addition, the financier still provides credit checks, and account management, but a majority of the finance facility in left to the clients hands.
Larger banking firms use Invoice Discounting. Larger turnover clients utilise Invoice Discounting as is Confidential.
All Invoice discounting facilities can be disclosed or undisclosed! This meaning your debtors, you provide invoices for, are either notified or not.
Your firm would send in your ledger being charged a service fee. Business owners will have the availability to draw up to 80% of the ledger at request. Once funds are draw you pay commercial interest rates on those amounts until debtor pays. Basically an unsecured Overdraft against your debtors.
Please understand that these are not new finance products. Factoring is the oldest form of debtor Finance and is available to all forms of businesses.
Finally, Confidential Factoring is selective Invoice Finance with no lock in contracts. This is often backed by real estate security.
As a result business owners can select which invoices to fund. Also how many debtors you would like to use. The amount of equity in your properties determines funding limits. Security may seem high, but you get flexibility. This option in most cases is cheapest if used for selective funding.
Trade Debtor Finance Consultants Process:
In conclusion please contact TDFC consultants for further information. Trade Debtor Finance Consultants are experts in Debtor Finance call us today to find out.