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What is Factoring and Invoice Discounting?
So, how does it work?
An unpaid invoice has value. It's a debt your customer has agreed to pay in the near future. At any one time you'll have a number of unpaid invoices on your sales ledger. This means your sales ledger has value. So factoring companies will buy or advance the value of your outstanding sales ledger for a fee, often within 24 hours, rather than you waiting 30, 60, 90 days or longer for payment on the product or service you've already delivered.
Invoice Discounting
A variation of Factoring is Invoice Discounting which means you retain the credit control function and management of your sales ledger. A confidential facility can be offered so that the arrangement remains confidential between your business and us and you are responsible for the maintenance of the sales ledger.
KEY BENEFITS
- Allows you to unlock funds tied up in your outstanding sales ledger. You notify us of each invoice and we'll advance you up to 90% within 24 hours
- We provide a complete credit control service where we chase your customers, send your statements and collect payment.
- We don't just collect your outstanding invoices faster (saving you money), we do it in a truly professional manner that protects the relationships you have with your customers.
- Alleviates the administrative pressure, leaving you free to concentrate on running your business. We have one of the best credit control and collection services in the industry.
- You can make your financial forecasts confident in the knowledge they're not dependent on uncertain payment dates.
- On-line administration of your account.
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