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A Guide to Invoice Finance

Invoice Finance is the means of obtaining cash against unpaid invoices. More and more debtors or customers require up to ninety days credit terms in order to pay for their goods and services. Invoice finance provides up to 80% of these invoices immediately providing a valuable working capital facility.

Confidential invoice discounting is a form of invoice finance and as the name suggests the facility is provided in a format whereby your customers are unaware that you are discounting your invoices. Many businesses for a variety of reason would rather keep these matters confidential. However confidential invoice discounting is not on offer for every type of business. Invoice discounting can be susceptible to fraud and as such a business must be well established, be profitable with a sound and profitable trading history. A suitable credit control system must also be in place which the potential finance company will require to check o ensure you are capable of collecting your invoices.

Factoring which is similar to invoice discounting provides credit control as an additional feature. The factoring company will chase your customers ( usually by phone) on your behalf to ensure your invoices are paid in an efficient and timely manner. As your customers are aware that you are factoring your invoices and the finance company is in regular contact with your customers the facility is less susceptible to fraud.  Therefore just about any type of business will be able to obtain a factoring facility. New starts, loss making businesses, phoenix companies are all welcome to apply!

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XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

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