Invoice discounting is a type of cash flow finance, releasing cash against a company’s sales ledger. This flexible form of funding can be beneficial in bridging the gap often associated with trading on credit terms.
Typically, the invoice discounting company will release up to 90% of the value of an invoice within 24 hours of its issue, keeping cash flowing.
Invoice discounting is typically provided on a confidential basis and can be a useful tool for businesses trading overseas.
We aim to ease the burden that arranging insurance can bring. We pride ourselves on our personal approach, providing a dedicated contact to review your situation and provide continuous expert advice for your business or personal needs.
There are many benefits to this flexible form of funding. Most importantly, it enables a business to bridge the gap between paying suppliers and receiving payment from customers.
Where the facility is provided on a confidential basis, customers are not aware of the invoice discounting company’s involvement. Additionally, unlike with factoring, your credit control function is kept in-house so you retain control.
Funding grows in line with turnover and, having this access to cash, can assist in securing early settlement discounts with your suppliers.
Invoice discounting can also provide additional bolt-on facilities, such as lending against other assets and bad debt protection.
With many invoice discounting providers to choose from, identifying the right fit in terms of funding levels, service, culture, and cost, can be a challenge.
Hilton-Baird Financial Solutions works with Alan Boswell Group to help businesses find the right solution for their individual needs. Key benefits of using our services are:
Ongoing economic uncertainties and a rise in company insolvencies emphasises the critical role of credit insurance in safeguarding UK businesses in 2024. From mitigating risks of non-payment to bolstering access to finance, we take a look at the benefits of credit insurance.
We cover some important invoice payment terms that help inform your clients when and how you expect to be paid.
If you plan to charge vehicles on your commercial premises, it’s important that you understand the risks and that you’re properly insured.