Invoice Discounting Info

Invoice Discounting (often described as Confidential Invoice Discounting) works in a similar way to recourse factoring and is prevalent in the UK and Europe. It offers a number of strong advantages, including the immediate provision of working capital funding up to 100% of the sales ledger. This compares favourably in its own right against bank overdraft finance - which would advance only up to 40% of debtors. Like factoring, there's also no need for the business to ever have to go through the pain of renegotiating their facility - unlike a bank overdraft.

The main advantage of invoice discounting is that working capital is linked directly to sales. As your turnover increases so does the level of cash available. Unlike more traditional sources of finance, with invoice discounting there is no need for constant renegotiation. An invoice discounting facility may be designed to work in tandem with your existing financial and banking arrangements. Most invoice discounting companies will be able to give you on-line access to ensure the fastest possible payment against outstanding invoices.

Many well established, mature businesses have their own effective credit control and collection systems and only use invoice discounting on its own. Invoice discounting is generally a confidential facility, meaning that suppliers and customers are unaware of the facility being in place.

For further info on invoice discounting visit: www.statesecurities.plc.uk