Asset finance leasing - XL Business finance
  XL Business Finance Blog » invoice fianncing

Posts Tagged ‘invoice fianncing’

Small Business Invoice Financing

Friday, February 19th, 2010

Invoice financing provides cash against your unpaid invoices. Most factoring and invoice discounting companies will release up to 95% of your newly created invoices immediately with the remaining 15% being paid when your customer settles the invoice in full. For small businesses that might find it difficult to obtain a bank overdraft invoice financing can provide much needed working capital. As mentioned in previous blogs not all finance providers are the same and this is even more relevant when it comes to a small business choosing the right invoice financing company for their business. XL Business Finance has been helping small businesses for over 10 years obtain the most appropriate and flexible financing solutions.

Factoring can be obtained with a turnover of not much less than £100k per year. There are a number of small businesses which specialise in providing factoring services to the smaller business so it is always worth approaching one of these companies. Some of the larger independents are also very approachable and provide a quality service. With factoring our recommendation would be to choose a factoring company which is local to your business and one that actually specialises in factoring. Factoring is very much about adding value because not only does it provide cash against your unpaid invoices factoring also provides credit control leaving the owner with time to do other things. For this reason we do not tend to recommend the banks for factoring as it is more of an add on product than anything else.

For a small business it is more difficult to obtain a confidential invoice discounting facility. Traditionally invoice discounting has only been offered to business with turnover of £1.0m plus. However there are one or two invoice financing providers that will prefer to offer invoice discounting.  It all depends on how long the business has been trading, the previous track record and the systems and controls the business has inplace for credit control.

 
 
 

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.

 

Manchester, Liverpool, Leeds, Preston, Sheffield, Stoke, Merseyside, Lancashire, Cheshire, Staffordshire