What is Invoice Discounting, Invoice Factoring, Debt Factoring and Invoice Finance?

  • Anil Kanda
  • 28 Jan, 2011

We aim to keep this simple, basically you raise invoices and get an immediate cash payment from your chosen company, up to 90% immediately to keep your cash flow into the business fast. Various terms are used including words such as eg. factor, factors, factoring, discounting and finance.

Their are differences in the service levels provided and some companies will not deal with turnover under £500,000 per annum. Invoice discounting will only suit companies who have a strong credit control system in place and just require cash quickly, factoring and invoice finance also provide credit control and chase payments for you. Some companies will expect you to place all your invoice with them and others allow you to select customers saving you the fees payable for the service. All schemes are paid for by varying percentages of the invoice value.

Ashley Commercial Finance, the friend of small business, offer a cost effective service to businesses with turnover up to £3 million and allow customers to cherry pick the invoices they wish to “invoice finance” therefore avoiding the charges on the rest, they do credit checks from the legal department and chase your cash flow allowing you to get on with your business, check out their services. We can also provide asset finance funding for vehicles, plant equipment and manufacturing machinery.

Invoice Finance is growing rapidly in popularity allowing businesses to speed up cash flow by releasing up to 90% of invoice value immediately removing the need for bank loans and overdrafts to meet bills and wages. Start an application now