Invoice Discount - Cash-in your Receivables
Small and medium-sized companies are especially vulnerable to market threats and liquidity issues because Banks are nowadays quite restrictive if it comes to lending. Furthermore, liquidity needs usually grow with increasing turnover, making bank loans and overdraft facilities less favorable. Thus, Businesses should consider Invoice Discount as means for improved liquidity. But what’s the difference between Factoring and Invoices Diccount? Well, the lines are blurry. A Factor is buying your (unpaid) invoices whereas Invoice Discount is rather a lending towards your unpaid invoices with 60 or 90 days payment terms.
Today, smaller businesses and larger SME’s have to find an alternative and viable way of financing. Therefore, a Invoice Discount Solution has become an important and vital factor of consideration. Once we put a General Agreement for you in place, we can transfer your money within two (2) working days. The credit will amount to approx. 80% of the respective receivable. The balance, less a small applicable fee, will be received by you after a debtor has paid its arrears.
Hence, if you choose our Invoice Discount as alternative funding solutions today, you may increase your liquidity by tomorrow.
We offer solutions from as little as a turnover of 500,000 (500,000 Sterling/Euros) per annum in simplified structures, whereby our focus is on enterprises with 2 to 5 million Sterling (2 to 5 million Euros). Inhouse Invoice Discount for enterprises is possible starting from an annual turnover of 10 million (10 million euro).
From our point of view, advantages of Invoice Discount outrank disadvantages. “The Entrepreneur-Handbook” – a Blog for Entrepreneurs – explained the Pros and Cons in detail. Some of those disadvantages are not really bad, because we believe it’s better to find out if a client has financial difficulties through your Factoring company (refusal to finance) than through unpaid bills, right? And a reduced profit margin doesn’t matter as you wouldn’t have made this turnover at all without funding.
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