|
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. |
|
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
|
|
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% |
|
- 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. |
 |
 |
