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Invoice Discounting

Invoice discounting is simply the means of raising cash against unpaid invoices. Choosing the right finance company can provide the financial freedom to grow the business or  in these difficult times it can implybe the difference between survival and failure. Not all invoice discounting companies are the same and it is important to choose the best finance company for your particular requirements.

Bank owned invoice discounting companies are very good at looking after their own customers providing the business is financially strong. If there is a strong bank connection with other facilities such as commercial mortgages and /or overdraft facilities the banks will bend over back wards to ensure they get the business.  It is still possible to get some very cheap invoice discounting deals on this basis. Be  beware that if you expose your business too much to one  financial institution you might be storing up trouble for the future. No one could foresee the creditt crunch however in hind sight it easy to say we should have seen what was coming. It is exactly the same with finance facilities. Let the bank have too much control and if things turn for the worse any business with too much financial exposure to one bank may find themselves in difficulties.

An independent invoice discounting company will ensure that any risk is spread across a number of finance companies and that you don’t have too many eggs in one basket. There are plenty of invoice discounting companies glad to take on the invoice discounting  on a stand alone basis and they wont be interested in taking over the core banking.  However if you do choose to use a third party factoring company it is worth checking if the bank isrelying on the debtors for security on any of their facilities. If the business has an overdraft it may be possible the bank have registered a debenture against the business. Therefore if you are to switch to an invoice discounting facility any overdraft maybe withdrawn and this must be taken into consideration with choosing a provider.

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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 Limited are authorised and regulated by the Financial Conduct Authority FRN 718737. How to make a complaint

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