Invoice finance takes two main forms – factoring and invoice discounting. The different benefits provided by these services are listed below.
What is factoring?
Factoring is a flexible funding and collections service which releases cash
tied up in outstanding customer invoices.
What this means:
- You can bridge the cashflow gap between raising an invoice and getting paid.
- You can boost your cashflow by receiving an immediate cash-injection and
On going supply of working capital into your business against the value of your outstanding invoices.
- You can benefit from the factoring provider’s credit control service, saving you valuable time, as they will chase and collect outstanding invoice payments on your behalf.
What is invoice discounting?
Invoice discounting is a flexible funding-only solution which releases cash
tied up in outstanding customer invoices.
What this means:
- You can bridge the cashflow gap between raising an invoice and getting paid.
- You can boost your cashflow by receiving an immediate cash-injection and ongoing supply of working capital into your business against the value of your outstanding invoices.
- You maintain the relationship with your customers and you collect payments against outstanding invoices – the invoice discounter provides the cash to support you. Unlike factoring, invoice discounting does not include a credit control service
For more information and to compare invoice finance quotes please call 0800 597 4757 or apply online.
- Invoice finance overview
- Advantages of invoice finance
- How invoice finance works in practice in the UK
- Who is suitable to use invoice finance?
- What does invoice finance cost?
- Step by step guide to signing up to an invoice finance facility
- Common questions asked about Invoice Finance funding
- The benefits of using an invoice finance broker?
- Who can use invoice finance?
- Invoice finance quotes
- Finding the best invoice finance deal
- Invoice finance or business overdraft – that is the question?