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Invoice discounting credit limits

In theory  invoice discounting finance will release up to 80-90% of your total invoice book. All finance companies have  eye grabbing headline rates and promise the earth when it comes to  releasing cash. However the biggest problem with invoice finance and factoring is that it is very difficult to obtain funding against a client if they have a very poor credit rating.  As most  finance companies will tie you into a 12 month contract or even longer it is imperative that when choosing a finance partner  that potential credit limits are taken into consideration. XL Business Finance has over 10 years experience in helping and advising clients choosing the the correct invoice finance company.

Different finance companies have differing policies when it comes to credit limits for invoice discounting and factoring.  For example certain banks will not fund a debtor at more than 20% of your total turnover. Other financial institutions may be happy to fund a debtor no matter what the percentage of turnover. Recently we have seen one high street bank provide a £10k limit against all a businesses turnover. Not brilliant if your business is dealing with a few large businesses. However this could very useful if your businesses have many different customers and the outstanding balance is below £10,000.

What we recommend is that if you have been unhappy with your existing finance company as an independent finance company we can analyse your aged debtor report and work out what funding limits you may obtain with a variety of different finance companies. You could do this your self however you might find you are talking to the wrong companies. We can save you the time and the hassle and more importantly it wont cost you a penny. Give us a call today and find out how one of the UK’s leading independent business finance and invoice finance companies can help your business.

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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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