To remain competitive, your company has to give a credit of 30 days, which may extend to 60 or 90 days before the payment finally materialises; thereby, creating a cash constriction within your company. To overcome this problem, finance companies offer invoice discounting, by which 85% (as an example) of the value of outstanding invoices is immediately advanced to your company. The remaining 15% less the charges of the finance company is paid to your company after your customers realise payment of the invoices. When the customer is aware of the involvement of the finance company, the process is known as invoice discounting and when the customer is unaware, it is known as confidential invoice discounting.
9 reasons to choose Invoice Discounting to grow your business
1. Choose invoice discounting to improve your cash flow. An immediate infusion of cash up to 85% (as an example) of your outstanding invoices enhances your cash flow. The remaining 15% minus the charges of the finance company is paid as soon as the customer pays the invoice.
2. Choose invoice discounting to gain access to a steady stream of cash that grows proportionally with your sales. As your sales grow, so does the amount of funding available to your business, thereby facilitating a sustained growth of your company.
3. Choose invoice discounting to ensure that your outstanding payments are made on time, and in a regular fashion by your customers to a special bank account, which is usually created in your name though is controlled by the finance company.
4. Choose invoice discounting to remain in control of the entire collections process. Some finance companies provide you with 24-hour Internet access so that you can track the payment history of your customers efficiently and accurately. You also know how much funds are available to you at any given moment.
5. Choose invoice discounting if your business model permits the finance company to be disclosed. However, if you do not want your customers to know that you use the services of a finance company, then you can opt for confidential invoice discounting.
6. Choose invoice discounting if your company records an annual turnover in excess of one million pounds and is trading profitably. Most finance companies require this minimum criterion to extend their invoice discounting services.
7. Choose invoice discounting if you need a separate line of credit totally unrelated to your bank account and credit cards.
8. Choose invoice discounting to take advantage of attractive discounts from your suppliers. With cash payment, suppliers give away hefty margins as discounts, which is additional cash earned by your company.
9. Choose invoice discounting for an extremely viable solution for the steady growth of your company.
Bibby Financial Services'
invoice discounting and
confidential invoice discounting services can provide your business with an immediate and ongoing cash flow.
