What is invoice discounting?
Invoice discounting is a way of drawing money against your outstanding sales invoices, immediately.
However, your business retains control over the administration and collection of your sales ledger. It can be completely confidential such that your customers are unaware that you are using a facility.
It provides a cost-effective way for businesses to help improve their cash flow.
How much money could I raise?
With outstanding unpaid sales invoices of £240,000 you could receive an initial cash injection of over £200,000.
An invoice discounting company will provide you with invoice finance of up to 95% (this may be 100% in some cases) of the value of your outstanding sales invoices. You can then use that cash to fund further growth and expansion.
The discounter will then continue to provide you with up to 95% of the value of new sales invoices, normally within 24 hours of you raising them.
The remaining 5% of each invoice will be passed onto you by the invoice discounter when the customer pays (the customer does not need to know of the invoice discounters involvement).
In some cases overpayments in excess of that value can be made available.
Who can help?
Cashflow Acceleration Ltd, an East Sussex based company, offer a UK wide free independent quotation search service for invoice discounting.
In many cases they have saved clients at least 33% of the cost of their existing or quoted invoice finance facility.
Call 01892 784183 today for a FREE independent quotation search.
