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Confidential Factoring

The ability to release 90% of unpaid invoices before they are due can provide a massive cash flow benefit to any business.  However for many businesses  it is important to obtain a  degree of confidentiality to maintain a good client rapport. Traditionally confidential invoice discounting would have been the chosen product however n the credit crunch and recession it is more difficult to obtain a confidential facility. Could confidential factoring be the answer to your problems?

Confidential invoice discounting  is traditionally for long established and profitable businesses with turnover over £0.5m.  A business can release up to 90% of their unpaid invoices simply by sending copies of their invoices to the finance company. The finance company is in effect trusting the business not to supply and fake invoices hence the business has to be trading well and be profitable.

Whilst traditional factoring can release cash your customers will be aware of the factoring company involvement as you will request on your invoice payment be made direct to the factoring company. This can be unacceptable for some businesses who like to keep their funding affairs private.

Confidential factoring is in effect a half way house. A trust account is set up in the name of the business where customers payments are sent to. In addition the factoring company will have a dedicated phone line in the customers name and all credit control will be made in the customers name. In this way the factoring company maintain control of the account and the customer is happy as confidentiality is maintained. This facility is particular useful for businesses which have been used to confidential invoice discounting but due to a change in circumstances no longer qualify.

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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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