FIRSTfactor
FINANCE
0845 643 4611
Working Capital Specialists

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CONFIDENTIAL INVOICE DISCOUNTING

Helps businesses create opportunities

In today's highly competitive economic environment, businesses working capital are under constant pressure to tighten operational controlsin order to maintain profitability and increase working capital. In many cases, small companies must devote more time to credit and working capital concerns which shifts attention away from the principal objectives of increasing productivity, sales and marketing efforts.

Confidential Invoice Discounting helps businesses create opportunities though improved cash flow. At First Factor Finance, we recognise we recognise that cash flow is the lifeblood of any business. That is why securing and accelerating your cash flow is our most important objective. Confidential Invoice discounting has proved to be a fast and highly cost-effective method of overcoming cash flow problems particular for growing businesses. It is quick to arrange. It is Confidential and far more flexible than Bank Finance.

Confidential Invoice Discounting

Confidential Invoice Discounting is one of the fastest growing products worldwide. It is without doubt a credible, flexible, cost-effective and proven way to help finance your business, manage your cash flow and fund your expansion plans all at the same time without the need to pledge other assets or give away equity. Traditionally, small and medium sized businesses manage tight cash flow periods by using an overdraft facility, which generally requires real property security. By contrast, the Confidential Invoice Discounting products are genuine trade facilities secured by invoices instead of property and are positions to fund your business future growth. Confidential Invoice Discounting is also scalable so it expands and contracts with your business better than an overdraft could ever do.

It is even more important for businesses to ensure that they have sound credit lines in place than ever before. A Confidential Invoice Discounting facility improves cash flow, allows a business to take advantage of growth strategies and potential acquisitions as well as avoid the significant impact extended credit terms enforced by large corporations can have on the business. Do not let slow paying debtors or limited working capital hold your business back.

With Confidential Invoice Discounting, complete confidentiality is always ensured. Unlike Factoring, you remain in full control of your credit management and your outstanding invoice collection procedures, so your customers will never know you are using an Confidential Invoice Discounting service.

Confidential Invoice Discounting comes with two main costs - the interest on the money you actually use and your administration fee, which will range between 0-2% of your turnover. Your turnover will dictate the level of rates. Contact us for a no obligation conversation and we will be able to give you an indication of rate.

How does Confidential Invoice Discounting work?

Credit against your business-to-business debts

Confidential Invoice Discounting finance facilities are based on your outstanding debtors, so the amount of cash available grows in line with your turnover, providing you with ongoing access to the funds required to complete the next order, without having to wait 30 days or more for your customers to pay.

Step 1: Invoice your customer for sales of goods or services
Step 2: Notify the Confidential Invoice Discounting Company of the sale
Step 3: The Confidential Invoice Discounting Company advances up to 90% of the value of your invoices, in as quick as 24 hours
Step 4: When your customer pays, the Confidential Invoice Discounting Company releases the remaining 10% of the value of your invoices as they are paid, less their charges

Confidential Invoice Discounting is a line of credit against your business-to-business debts. You gain access to up to 90% of your invoice amount as soon as you raise the invoice - so the bigger your invoice, the bigger your line of credit.

Twenty years ago, Confidential Invoice Discounting was a niche product in the UK. Today, it is viewed as a mainstream-funding alternative and is being offered as part of broader financial packages such as Trade Finance, Stock Finance and bad debt protection products. Products have also evolved, single customers; individual invoices on a one-off basis or whole sales ledgers can now be included in a Confidential Invoice Discounting arrangements. There has also been a rise in niche Confidential Invoice Discounting Companies servicing particular industries like the construction sector, recruitment, steel stock holding, road haulage and distribution. There products have been developed to recognise particular demands of specialist sectors. Take recruitment, some specialist Confidential Invoice Discounting Companies provide payroll administration in addition to working capital finance.

Confidential Invoice Discounting can help you

Sales Finance solutions grow with your business

Confidential Invoice Discounting Experts

Nothing is more frustrating than watching expenses mount up while you wait for your customers to pay. Receivables Finance helps you turn accounts receivable into cash, by accessing up to 90% of the value of eligible invoices usually within 24 hours. It’s a flexible ongoing facility. When your business is growing rapidly, it is all too easy for cash flow to get out of control. With costs increasing as you ramp up capacity, you cannot afford to be kept waiting for your working capital. A Confidential Invoice discounting Finance solution grows with your business. The more eligible invoices you issue, the more you can borrow, helping you to keep pace with rising demand.

If you would like to know more of the available options for your business please contact us for a no obligation free chat.