FinanceReferences.com

Posts Tagged ‘Invoice’

Invoice Finance remains a mystery to many businesses in the UK. Unfortunately, although the benefits of this solution are slowly becoming increasingly well known, Invoice Finance is still a largely undiscovered gem amongst the possible funding options available to SMEs. Invoice finance is increasingly becoming a more popular way to fund a business as an alternative to the traditional overdraft. Unlike an overdraft, which is usually secured on personal and/or property guarantees and set at a rigid limit, an invoice finance facility is secured on sales invoices and will increase as your business grows. There are facilities to suit most businesses, from new-starts to long-established, from 100k to 50 millon pound turnovers, from those with only UK customers to those trading overseas. As long as you have business customers being sold to on credit terms, then funding may be provided against their invoices. There are two main types of facility; factoring and invoice discounting. Within Read More

There are many questions that regularly come up when businesses are looking to raise extra capital for expanding their businesses or manage day to day cashflow. This article looks at three commonly faced issues and provides the best possible solution. Q. My company imports garden furniture from China and India and I distribute to the UK retail and wholesale markets. I ship goods to order, have a highly seasonal business and am now approaching my busy period. I fund my business with an Invoice Discounting facility with an independent finance company and I am happy with the charges but they have told me that my advance rate of 90% is as high as they will go? A. The nature of your industry and, specifically the purchase transaction, is such that you could link a trade finance solution into your Invoice Discounting facility. The trade finance company and the Factoring Company can even be the same funder. This means the funder will open the letter of credit for you and purchase the goods Read More