Invoice discounting is a great way to improve your business cash flow, especially if you are planning to grow your business. Very simply, Invoice Discounting gives your business an immediate cash flow boost by freeing up cash that is tied up in unpaid invoices. It saves you the frustration of waiting for your customers to pay. You stay in control of the credit control and collection process and even better, your customers don’t know about the facility, as it can be offered on a confidential basis.
How does Invoice Discounting work?
Invoice Discounting is very straightforward. When you raise invoices to customers, you bulk upload the invoices to the funder. Within 24 hours, you can access up to 85% of the invoice value. When your customers settles the invoice (paying into a dedicated trust account in your company name), the remaining value of the invoice (15%), less any agreed charges is available. This happens on a continuous basis.
What are the benefits?
- An instant cash boost. It gives your business the benefit of an immediate cash flow boost.
- Flexible. It’s far more flexible than an overdraft – as funding can increase in line with your turnover.
- Better cashflow management. With a smoother cash flow, you can focus on running your business more efficiently.
- It’s cost-effective. With access to cash you can negotiate better prices, discounts and even reduce bank charges.
- Improve credit limits. By paying suppliers promptly, your suppliers may offer you better credit terms.
How much does Invoice Discounting cost?
Invoice Discounting suits financially strong companies with a turnover in excess of €750K per annum, and sound management systems. The fees vary, depending on the funder and the facility you choose. We can explain all the fees and charges to you, to make sure you are fully aware of all the costs involved.
Which type is right for me?
- Confidential Invoice Discounting. Your customers are completely unaware of the facility.
- Disclosed Invoice Discounting. Your customers are aware of the facility by way of an assignment notice.
- Non-Recourse Invoice Discounting. You may opt to include Bad Debt Protection as part of the facility.
- Export Invoice Discounting. Fund your export invoices in a very cost effective way.
What’s the next step?
If you are looking for the best Invoice Discounting deal for your business, it makes sense to speak to an industry expert. With 22 years experience, Clancy Business Finance can give you impartial expert advice and explain all you need to know about invoice discounting before you talk to any lenders. With our expertise we can identify the best funding solution for your exact needs, and we can introduce you to the most suitable lenders to meet your specific requirements. We’ll package your funding application to ensure you get the best outcome, and we’ll manage the entire process, so you can be sure you are getting the best deal with the most suitable lender for your business.