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Invoice Finance

Invoice Finance is simply the means of raising cash against unpaid invoices. It is totally a means to raise cash and as a rule has no added value service.

However in the current economic credit crunch the biggest problem customers face is getting decent trade limits against their customers which can have an adverse affect on their cash flow. The biggest source of enquiry is customers complaining of derisory credit limits and asking if there is an alternative available. The truth is that there is very little difference between the funders however it could be argued that a larger independent will provide more flexibility than a high street bank.

We believe the most important aspect in choosing a invoice discounting facility is that a business spreads the risk. Until recently it is so easy to take an invoice discounting facility in conjunction with a small overdraft, even some Hire purchase and maybe a commercial mortgage. Remember a bank is great at giving you an umbrella but soon as it starts raising they want it back. We have recently seen an instance recently whereby a customer went bust. This affected the invoice discounting facility and because it was group banked the overdraft was withdrawn and the business went into administration. This would not have happened if the invoice finance had been separate.

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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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