Management buy-out with invoice discounting

Achieve your management buy-out through invoice discounting

Short-term finance is often fundamental to management buy-out success, but it can be difficult to access.

Fortunately, invoice discounting offers a solution, as it’s simple, accessible and efficient. Within 24 hours you can receive up to 85% of the value of your unpaid invoices, our partners Aldermore Bank providing your buyout with a handy cash injection. There's no set-up fee so if you're unsure about the benefits it brings, you can trial the facility on a monthly rolling basis to make sure it is right for you.

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The benefits invoice discounting brings

• You'll receive capital quickly and ease the MBO process
• When you issue an invoice you'll know when it will be paid
• There's no long term loan involved – the loan is repayed each time a client settles their invoice
• The facility grows with your business so there's no need to keep increasing your overdraft
• Invoice discounting tends to be more competitively priced than overdrafts and conventional loans

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Why invoice discounting?

In comparison to other financial products invoice discounting can prove more cost-effective. Rather than charging interest and arrangement fees like a traditional bank loan, invoice discounting fees are split into two parts:

• A Service Fee covers the day-to-day servicing of your purchase ledger. This can be between 0.5% and 3% of your turnover.
• Interest is charged against the amount of each invoice, usually at a fixed percent above the factoring company’s base rate
• Completely confidential facility

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