Invoice Discounting
Invoice Discounting is an excellent option to help your business grow and as your business grows, unlike a working capital overdraft, your invoice discounting facility grows with you.
Is Invoice discounting right for your business?
- Do you trade with other businesses?
- Do you have an annual turnover of more than £500,000?
- Do you issue invoices with credit terms from 14 to 90 days?
- Do you have a well run credit control function and want to retain control over this?
- Are you and your business looking to grow and need more working capital?
If the answer to these is yes, invoice discounting is an option for you and can release working capital immediately by providing up to 90% of the invoice value in your debtor book on a confidential basis. And whilst you will have to re-negotiate your overdraft at least annually, and more often if your business is growing, with invoice discounting the funding levels automatically grow alongside your business without the need for continual re-negotiation, giving you a quick and easy way to free up funds.
How does invoice discounting work?
- You raise an invoice and send it to your customer
- You update the invoice finance company online or send copies on to them
- Up to 90% of the invoice value is then made available to you straight away
- Your credit controller gets payment from your customer, and this is paid into your invoice finance clients account
- Once this has cleared the balance less fees is sent to you
What are the benefits of invoice discounting?
With bank overdrafts on the decline, invoice discounting is seen by many as the quickest and easiest way of freeing up money with no change in your credit procedures
- Improved cashflow – you won’t have to wait for 90 days for payment
- Confidentiality – your customers will not know
- Up to 90% of invoice value available
- It includes an option to add in bad debt protection to protect you from failing businesses
- There is no change to your credit control function
- Quick access to finance – it is possible to get funding in place in less than 7 days
- Online access
- No need to change day to day banking
- No need to provide direct security over your home or other property assets
Touchstone offers a free initial assessment on all our services, and to find out more about how invoice discounting can work for you and your business, or to review your current invoice discounting arrangements contact us for more information now, either by calling us on 07595 219921 or filling in the following :
