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Which invoice discounting company is best for financing contractual debt.

Not all invoice discounting companies are the same. This is especially true if there is a certain amount of contractual debt within your invoicing procedure. Contractual debt is most relevant in the construction sector whereby invoice are produced at certain stages within a project. There are only two invoice finance companies that are capable of handling contractual debt and both are very different finance companies indeed

Most finance companies have been told that it is not possible to raise cash against contracts   ( normally by their bank) however XL Business Finance has been helping clients obtain debtor finance where contracts are involved. The problem with contractual debt if that the job isn’t finished then the end customer can with hold payment. For this reason if you mention contracts nearly every invoice discounting company in the land will not be able to provide funding.

There is one high street bank that can provide invoice discounting against contractual debt. I have told you in previous blogs that we are not totally against the high street banks as there are a few exceptions to the rule and this is certainly one of them! The other finance company is a larger independent that uses in house quantitative surveyors to check the value of the work undertaken. Which finance company is best for you depends upon your location, length of time trading and how profitable you are.  XL Business Finance is very capable of assisting you with finding the right funding partner.

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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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