What is Invoice Discounting?
Invoice Discounting is a service that releases the cash that is tied up in your outstanding sales invoices. You continue to handle your own credit control and the facility can be completely confidential (your debtors don't know you are using it) or disclosed (your invoices show the name of the discounter).
Invoice Discounting is explained in detail below with further information and resources such as case studies and articles that explain the benefits and how to compare quotations and prices. To request a no obligation UK wide search for invoice discounting quotations follow this link:
REQUEST A FREE INVOICE DISCOUNTING QUOTATION SEARCH
Who Cashflow Acceleration Are:
Cashflow Acceleration Limited offer a UK wide free, independent quotation search service for invoice discounting. In many cases we have saved clients at least 33% of the cost of their existing or quoted invoice discounting facility.
How Does Invoice Discounting Work?:
Invoice Discounting is a debtor invoice finance product (facility) whereby an invoice discounting company (also know as a discounter or invoice discounter) will provide you with invoice finance of up to 95% (this may be 100% in some cases) of the value of your outstanding sales invoices (accounts receivable) e.g. with outstanding unpaid sales invoices of £240,000 you could receive an initial cash injection of over £200,000. You can then use that cash to fund further growth and expansion.
The discounter will then continue to provide you with up to 95% of the value of new sales invoices, normally within 24 hours of you raising them. The remaining 5% of each invoice will be passed onto you by the invoice discounter when the customer pays (the customer does not need to know of the invoice discounters involvement). In some cases overpayments in excess of that value can be made available.
With invoice discounting you retain control of your sales ledger and the facility can even be
completely confidential, so that your customers don't know that the discounter is involved with the finance of your business. Some discounters will also be able to provide this service in respect of your export sales.
How Much Cash Could You Raise?
To find out how much cash you could raise use our free invoice discounting online cash calculator.
What Does Invoice Discounting Cost?
There are two types of charge, administration fee (to cover the cost of monitoring the risk) and discount charge which works in a similar way to interest on a loan. Examples of Costs for Invoice Discounting.
REQUEST A FREE INVOICE DISCOUNTING QUOTATION SEARCH
Bad Debt Protection
If you are concerned about bad debts, we can introduce you to a discounter that will also provide you with up to 100% bad debt protection providing you with added peace of mind.
Help With Further Resources:
For information about the cost of invoice discounting please click on the link below or contact us on the number shown above for a free, independent quotation search.
REQUEST A FREE QUOTATION SEARCH
Cost of Invoice Discounting and Example Cost Savings
Case Study Confidential Invoice Discounting
Article - Understanding & Comparing Invoice Discounting Quotations
