Cash is king when you are running your own business and most companies will need an injection of extra working capital to solve a cashﬂow problem or support growth.
Our factoring and invoice discounting solutions will ensure a healthier balance sheet and bank balance, giving you the power to handle an acceleration in the market and build on your success to date, as well as maintaining effective debt control. We also provide business cash loans of up to £50k.
Both invoice factoring and invoice discounting act as a means of providing an advance on future revenues. With invoice factoring, we will manage your company’s sales ledger and take charge of collecting money from customers directly if you wish. A percentage of the invoice total will be advanced to you up front, with the remainder paid on settlement.
With invoice discounting, we don’t collect any of the debts but will instead lend money against unpaid invoices as an agreed percentage of the total value.
Invoice factoring and invoice discounting – what’s the difference?
Unpaid invoices can be problematic for all businesses, big or small. The pressure of managing cashflow and the time taken to chase outstanding debts can be a challenge, not to mention stressful.
Which is right for you?
If you have an in-house accounts team and you want to keep your sales ledgers confidential then Invoice Discounting is probably the best route for you.
For smaller businesses with no or limited in-house accounts team and no time to chase invoices then Factoring is usually the preferred option.
Invoice discounting - how it works
The lender will give your business 80-90% of the invoice value, usually within 24 hours. Once the full value is settled by your customer, the invoice discounter pays the remaining 10-20% less any charges. With invoice discounting your customers will not be aware of your involvement with a financing company as you maintain responsibility for payment chasing, credit control and invoice processing.
Benefits in brief:
Factoring – how it works
Factoring is a completely outsourced credit control and collection service. The factoring company provides a cashflow advance (an agreed % of the invoice value, usually 80-90% of total amount). They will then chase your customers on your behalf to settle all invoice payments and manage the credit control of your business. They are also responsible for processing invoices meaning that your customers will be aware of your involvement with a factoring company. Further to this, they are responsible for paying the final percentage on settlement of the invoice.
Benefits in brief:
Academy Leasing were able to recognise the strength of our business model.- Dawn Saunders, Managing Director, Wingate Signs
Why choose us