FACTORING AND INVOICE DISCOUNTING
What the products do
Factoring and Invoice Discounting are both asset based lending products which provide fast, accessible cash into your business. Money is lent to your business against your unpaid invoices. You can receive up to 90% of your invoice value within 24 hours. It is a viable alternative to a business overdraft.
Why is it useful?
- Cashflow management. A Factoring or Invoice Discounting facility helps you manage your business cashflow.
- Alternative to business overdraft. It can be a fast and effective injection of cash into your business and an effective alternative to a business overdraft. Potentially you can borrow up to 80% more through a factoring or invoice discounting facility than you could through a business overdraft.
- Funding for MBO´s and MBI´s. As an immediate form of funding it is effective as part of a Management Buy-Out or Management Buy-In (MBO, MBI).
- No chasing invoices! If you are a growing business using Sales Ledger Management as part of your factoring facility enables you to free up time from chasing invoices and focus on increasing sales and profitability.
Our partners
Simply Business work with a carefully selected panel of the UK´s leading lenders.
What´s the difference?
- Factoring can include Sales Ledger Management. The bank or Factor will collect the money owing to you on your behalf.
- Invoice Discounting does not contain Sales Ledger Management.
Who uses the product?
Invoice Discounting and Factoring facilities are used by a wide range of industry sectors including Manufacturing, Recruitment, IT, Wholesale, Transport and Haulage and many more. The key requirement is that your business generates regular invoices to your customers.
- Factoring is often used by start up and growing businesses who find alternative forms of finance inadequate.
- Companies who have large stock and material costs to fulfil their services often use Factoring and Invoice Discounting to help keep a positive Cash Flow.
- Large companies use Invoice Discounting as a cheap and flexible form of lending or as a part of their MBO / MBI finance package.
What we do
We work with the UK´s leading banks and factors and can introduce you to these lenders and obtain preferential quotes for you.
We can help inform you about the different products and services available and assist you in finding the right lender for your company.
We´re the UK´s largest invoice finance advisor.
Meet our team: Corey, Katerina and Robin have over 50 years combined experience in commercial finance.