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Invoice Discounting Factoring

What is the Difference Between Invoice Discounting and Factoring?

Invoice Discounting should not be confused with Invoice Factoring, both methods of raising capital and increasing cash flow based on your sales ledger and invoices, but both with distinctive features.

Both methods of finance allow a business to release up to 90% of their invoice equity within 24 hours of an invoice being raised with the remaining 10% is released upon payment of your invoice, minus a small funding fee.

Each method allows a business to raise capital equity based on their sales ledger, or in other words, the invoices that they raise. The main difference between these two products comes in the method by which the payment is collected.

Factoring out-sources the responsibility of debt collection to the Factoring provider. The funding provider will manage your entire purchase ledger, releasing funds to you as invoices are raised. In contrast, Invoice Discounting places the responsibility of debt collection with the business itself, rather than with an external credit control facility.

What are the Main Benefits of Invoice Discounting?

  • It is a quick and effective method of releasing equity tied up in your invoices
  • It increases your cash flow and allows you to keep up with vital expenses and operating costs
  • It allows you to manage your own credit control processes with your customers
  • Your customers need not know of your preferred funding methods as all communications with your customers will be handled in-house
  • You can add bad debtor protection to your funding facility, providing peace of mind and stability

What are the Main Benefits of Invoice Factoring?

  • It is a quick and effective method of releasing equity tied up in your invoices
  • It increases your cash flow and allows you to keep up with vital expenses and operating costs
  • It allows you to out-source your credit control and ledger management, leaving you to concentrate on operations
  • The funding available to you will grow as your business grows
  • You can add bad debtor protection to your funding facility, providing peace of mind and stability

What is the Best Solution for Me?

The simple answer is that it depends on you, on your business needs and your plans for the future.

How can Simply Factoring Brokers help?

When considering flexible funding options, Simply Factoring Brokers will make an assessment of your business finance needs and make a recommendation based on our extensive experience and expertise. We scour the market place to find the right finance solution for each and every individual business that comes to us.

Simply Factoring Brokers aim to make the process of selecting the right funding solution as simple and straightforward for our clients as possible by only putting them in touch with finance solution providers that we feel will meet all of your business needs.

To find out more about Invoice Discounting and Factoring, or to talk about options that may be suitable for your business, give us a call to speak to our team of specialist brokers.  We will cut through the finance industry jargon to find the solution right for you at a cost that you can afford.

We make your business our business.

Fund Your Business Today

Call for invoice factoring services  Call 0330 134 2826 to release funds tied up in your invoices

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