Invoice financing consists of the following 3 elements:
- Cash Flow Finance
- Invoice Discounting
- Invoice Factoring
Below is an explanation of each of these features.
Cash Flow Finance
At Davies Finance we always bring a fresh approach when helping you to evaluate the array of cash flow products and funders in the UK market. We understand that as a business owner cash flow is immensely significance because it is critical to the survival of your company.
Our business has always been built on impartiality and our ultimate aim is to find your business the most outstanding form of cash flow finance possible. Whether it is Invoice Factoring or Invoice Discounting, we will always search out the best cash flow providers for you. We can also act as your financial partner as we deliver the best possible funding solution for your business.
Invoice Discounting
This is a type of Invoice Finance. This method is much more appropriate for larger businesses that have annual turnovers of more than £1m.
We have expert advisors who can assess the suitability of Invoice Discounting for your business. On top of all of that we can source out the best deal for you from our vast range of finance providers, and can find ideal solutions for businesses that already have strong credit control systems in place.
Many of our providers will include bad debt protection options this means that your business is protected if your customer becomes insolvent and is unable to pay their outstanding balance.
Invoice Factoring
Invoice Factoring is one of the two main points of Invoice Finance. This method will be most beneficial for small to medium businesses that have problems with customers who don’t pay on time.
This type of financing will give you access to credit control services that allow you more time to grow and to expand your business so you don’t have to spend your time chasing up customers who don’t pay you on time.
The finance company will usually provide you with a credit check service for new customers, another benefit of credit checks is that they can also help to negotiate better terms with your suppliers.
When you employ a finance company to carry out invoice factoring you can acquire up to 85%-90% of the value of your overdue invoices. Afterwards, the finance companies will collect the remainder of money owed and they will then forward the balance/money to you (minus their service charge).
If you have any more questions about Invoice finances or about Davies Finance then please give us a call on 0845 077 9117 where a member of staff will be more than happy to help you.
