Get paid quickly for outstanding invoices

Confidential Invoice Discounting (CID) can improve cash flow by providing an immediate injection of cash against your outstanding invoices.

A business typically receives 70-90% of the value of outstanding invoices, although some invoice finance providers can release up to 100%. The remaining balance is paid once your customers pay your invoices. Bad debt protection or credit insurance can also be provided.

You will have access to an ongoing supply of cash which grows in line with your sales. Your customers make payments via a specialist bank account which you can track online and monitor the amount of available funding.  Unlike factoring you retain control of your collections process meaning that your customers have no knowledge that you use this service.

For confidential invoice discounting ideally your business should have a turnover in excess of £300,000 per annum, although the criteria for eligibility does vary from finance company to finance company. Different banks and finance companies all provide funding in slightly different ways.

A good broker will be able to assess your spread of debtors and provide the most appropriate funding solution to suit your business. Does your business export, have any contracts in place or deal with only a few customers? These are all factors that need to be taken into consideration.

There are two charges associated with an invoice finance company. The interest for borrowing money is very comparable to what a bank would charge you for an overdraft. Secondly there is a service fee for monitoring and running your account.  Generally, this is exceptionally very good value for money however does vary depending on the amount, frequency and complexity of your invoices.

It is now common for your accounting software to dovetail with the operational software of the confidential invoice discounting provider providing a seamless and effortless access to available cash.

Unlike restrictive bank overdrafts invoice discounting provides a working capital facility that grows with your business. An invoice discounting facility provided by the most appropriate finance company will leave you free to unlock the true potential of your business.

For further information, why not request a no obligation chat to see how we can be of assistance. Contact us today to arrange.