Invoice Discounting / Factoring
(Cash Flow finance, Receivables finance)
The invoice discounting market continues to grow as traditional forms of liquid finance (overdrafts) are being more tightly constrained by Bankers due to recent legislation (Brumark case) and the banks general unwillingness to take any risk.
At Bell, we have a wide knowledge of the players in the market, and know who is hungry for business and who are specialists in certain industries. Our broking service puts you in direct touch with UK factors and invoice discounters who may be able to assist your business.
- This type of facility can dramatically improve your cashflow 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.
- It is ideal for funding growth. As the amount you can borrow grows in line with your sales
- It is ideal if your business does not have the financial track record or security available to negotiate sufficient overdraft facilities.
- Its implementation can often make it possible for you to repay bank facilities and release previously pledged security.
- Typically, when factoring is set up you can borrow about 80% of the value of your approved invoices less than 90-120 days old
- Once in place, there is often no limit to the amount you can borrow as the finance is linked directly to sales
- Debts can be insured
- Invoice Discounting facility costs are now comparable to overdraft charges
- Discounting is typically confidential, meaning that your customers are completely unaware of your financial arrangements
- Factoring is more expensive but removes the necessity for you to run your own credit control department
