Cash Flow Finance is the most raidly expanding form of finance and their are many funders positively active even in the current market. Whether it is factoring, invoice discounting or payroll finance these different  finance companies all have different areas of expertise. For example international trade finance is only undertaken well by 3 or 4  companies. Like wise stocking finance is provided by only 2/3 companies. Choosing the right company for your business can be made easier by speaking to a good independent broker.

It goes without saying that  invoice discounting is the preferred option when it comes  to a confidential cash flow finance facility. Although factoring traditionally provides credit control, it  is provided on a disclosed basis therefore your customers are aware of your facility. Invoice discounting is perceived as a bigger risk therefore businesses must normaly be well established and profitable to be considred for such a facility. More worryingly in the current credit crunch/recession banks are transferring customers from invoice discounting to factoring facilities or asking them to move away from the bank completely. It is very difficult to get get invoice discounting for businessses which maybe are experiencing tough trading conditions. However confidential factoring may be a half way house. A dedicated credit controller chases the debt in the name of the client and monies are paid to a trust account. This is a very specilaist area and not all finance companies can offer this facility

At .85% per month Payroll Finance isn’t the cheapest form of funding however when you consider that there are no personal guarantees required and that the payroll funder is classed as a trade creditor it is proving a viable alternative to a bank overdraft. There is no guarantee that banks are even willing to grant overdrafts and they more often than not require additional and onerous security.  Payroll finance provides up to two months of the gross monthly payroll on a revolving credit facility. It can sit alongside traditional cash flow facilities such as factoring or invoice discounting. Surely less reliance on the bank has got to be a good thing in these difficult times!