Invoice Discounting
Many established businesses are well run and fundamentally sound, yet constantly suffer from a debilitating shortage of cash which can eventually lead to the breakdown of profitable trading.

Invoice Discounting solves this problem. You continue to receive your customers' payments and manage your sales ledger and credit control activities. We give you a prepayment facility on your invoices of up to 80% and the balance when your customers pay.
 The Services

There are two options available:

  • Confidential Invoice Discounting is provided to established profitable companies with a strong balance sheet.
  • Disclosed Invoice Discounting is provided for companies whose balance sheets are not so strong, and our involvement is disclosed to your customers. For many clients this facility develops into a confidential arrangement, as the benefits of consistent cash flow take effect and profitable expansion gets underway
 Case Study
A Packaging Company

A packaging company sought to expand into new markets. They recognised that a guaranteed source of funding was as vital to success as investment in new technology. They did not want the continual re-negotiation of funding facilities to hold them back, and their credit control activities were efficient. Invoice discounting gave them funds which kept pace with growing sales while retaining credit control in-house. In one year turnover increased 26%
 The Benefits:
  • No more cash flow headaches, leaving you free to concentrate on growing your business.
  • Receive 'Cash on Delivery' but still give your customers the credit terms they have always enjoyed.
  • Improved return on your capital
 The Process And The Cost:

The procedure is simple and most funds are available within 24 hours from receipt of your invoice details:

  • You send us details of your invoices.
  • We credit the invoices to your account and make funds of up to 80% available within 24 hours
  • You tell us how much of those funds you want.
  • We send you the money.
  • When your customer pays, we send you the balance.

You will be kept informed of the balance of your account or make enquiries on the internet based communication system. Naturally there is some paper work involved but this is kept to a minimum.

The costs are divided into two areas - a service charge and interest on the finance. Most companies find that the finance costs less than a normal overdraft arrangement. There is no set price for the service - it depends entirely on your individual requirements and the workload involved for us. As a guide, the service charge for invoice discounting would be in the range 0.2% to 0.7% of annual turnover and the finance at around 2% to 2.5% over base rate.