Invoice Finance (or Invoice Discounting)
Invoice Finance allows you to raise funds today against your debtor book without having to wait for your invoices to be paid.
Typically you can raise 80% to 95% of the book value although this can vary (both upwards and downwards) subject to the debtor type and credit quality.
You still manage of your sales ledger and are still responsible for collections from your customer base.
The lender’s loan is secured against your debtor book and repaid when the invoice is paid. New invoices can then be financed in the same way with the loan acting as an ongoing revolving credit facility.
Invoice Factoring - We can also provide invoice factoring which operates in a similar manner but where customers/”borrowers” sell their sales ledger/debtor books to a lenders (the factor), who collects the unpaid sums.
Invoice financing is confidential. The borrower’s customers will usually remain unaware that the company is borrowing against their invoices. With invoice factoring, the “borrower’s” customers will usually know.
All products are subject to status and individual lenders’ underwriting.