When to consider Invoice Discounting

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When to consider Sales Finance

When the decision is made to pursue an Sales Finance facility, the company should have a clear understanding of its own goals, as well as the results expected from the Sales Finance Company. This will allow the company to take full advantage of the comprehensive range of Sales Finance services available.

Sales Finance is a particularly viable alternative for a growing company and Sales Financeunlocks cash tied up in a sales ledger. In such a business environment, control is essential because managerial and financial resources are constantly being challenged.

Sales Finance can ease cash-flow problems, Sales Finance can provide some predictability in a rapidly changing situation. Sales Finance can also increase the availability of working capital and alleviate cash-flow problems when a company takes on new customers; gains new customers; experiences a slowdown in collections (customers tend to pay quicker when they know a Sales Finance is involved); has increases in bad-debt levels (Sales Finance Companies can also provide bad debt protection); has heavy capital investment program or just needs to cover unforeseen cash requirement.

An acquisition, for example, can expose the firm to a new and unfamiliar customer base, thereby creating a need for enhanced receivables management (Factoring). And since granting trade credit is comparable to making an investment in another company, a factor's credit protection helps prevent unsound investment decisions.