Turn your business overdraft into a factoring facility

Do you find it difficult to receive the appropiate business overdraft facility from you bank? Have you ever thought about alternatives to business overdrafts? Using our factoring or invoice discounting facilities could be a better alternative to business overdrafts for your business.

Benefits of invoice finance compared with an overdraft

• Invoice Finance will typically provide you with a larger upfront cash injection.
• The facility is linked to your sales (not your balance sheet) and will therefore grow with your business.
• Invoice Finance can be a cheaper alternative to a business overdraft.
• Financial planning is made easier, as agreements are for a fixed period and are not repayable on demand.
• With Factoring, you can outsource management of your entire sales ledger (should you so wish) saving you both time and costs.

What is invoice finance?

Factoring and invoice discounting are both invoice finance products. Invoice finance is a way of borrowing money against the value of your unpaid invoices, where you can get your advance of up to 90% of the invoice value within 24 hours of issuing your bills.

With factoring you can also outsource your debt collection, handing over your sales ledger management to the factoring company.

Factoring
With factoring, the factoring company will collect the outstanding amount of the invoice. You outsource management of your sales ledger completely and you don't have to worry about holding enough money in the bank to pay your staff and overheads.

Invoice discounting
This product is similar to factoring, except you retain control over your debt collection and credit control. Invoice discounting is suitable for larger companies with an established credit control function. It allows you to raise money from invoices quickly without your clients knowing about the invoice discounting company.