Businesses wishing to free up cash against unpaid invoices can use Invoice Finance as a means of assisting with cashflow. There are various forms of invoice finance and which form of finance is best for you depends on a various circumstances. A good factoring broker will be able to assist with choosing the right company.
Confidential invoice discounting is best suited for businesses which are well established and have a proven track record of being able to collect their invoices. Adequate systems must be in place and any finance company can make an offer subject to an audit. One of our complaints as a broker is that we see offers which in reality we know will not come to fruition. We know exactly which finance companies are able to deliver and which ones will fort short on their promises.
A traditional invoice discounting facility will enable a business to submit invoices and they are able to draw cash immediately. It is very much a trust thing going on and as such a business must be well established and trading profitably. Some finance companies behind the scenes will run a mirror ledger unbeknown to their customer to ensure that nothing untoward is going on. Not all finance companies will do this explaining why some finance companies are happy to offer confidential invoice discounting and some finance companies are not.
Tags: factoring broker, invoice finance
