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Cashflow Finance raises money on
outstanding invoices so that you have the
cashflow to run and grow your business,
depending on your client base and the
operating conditions of your business. We
can release funds to you within 24 hours of
receipt of your sales invoices if required
(subject to agreed processing conditions),
turning up to 95% of their value (less fees)
into cash.
Benefits of Cashflow Finance:
- Faster sales growth
- Improved investment opportunities
- Increased purchasing power
- Improved supplier relationships
- Optimised stock levels
- Achieve growth without increasing
capital or parting with equity
You can choose between two methods of
Cashflow Finance:
1. Factoring
Factoring is a word often misused
synonymously with accounts receivable
financing. Factoring is a financial
transaction whereby a business sells its
accounts receivable (i.e., invoices) at
a discount. Factoring differs from a
bank loan in three main ways. First, the
emphasis is on the value of the
receivables, not the firm’s credit
worthiness. Secondly, factoring is not a
loan – it is the purchase of an asset
(the receivable). Finally, a bank loan
involves two parties whereas factoring
involves three, the seller, debtor, and
the factor
You will need a minimum turnover of
£50,000 and an outstanding sales ledger.
You assign all sales invoices to our
partner on a continuing basis and they
manage your sales ledger . They agree a
cash injection of up to 95% of the value
of outstanding invoices (less fees)
within 24 hours. They apply their
professional credit control and
collection practices which reduce the
possibility of bad debt Once the debtor
makes a payment, they pay you the
balance of the invoice less any charges.
Charges are negotiated and depend on the
individual circumstances of each
customer.
2. Invoice discounting
Invoice Discounting can be described as
the provision of finance against the
security of receivables and in this
respect is similar to factoring. The
major differences is that the facility
is confidential i.e. the customer is
unaware of the facility and the supplier
is responsible for the sales ledger
administration.
You will need a minimum turnover of
£500,000 and an outstanding sales
ledger. You are responsible for
collection. You send our partners copies
of your customers’ invoices - they don't
know you're using our partners service.
Our partners agree a cash injection of
up to 95% of the value of outstanding
invoices (less fees) within 24 hours.
Once the debtor makes a payment, our
partners pay you the balance of the
invoice less any charges .
To get a quote from our specialist
Cashflow Finance partners please complete one of our simple
online "Business
Finance
Solutions Enquiry" or "Business Solution Callback
Request" forms which asks for some very
basic information to help them assess your
needs.
Alternatively please either use the "Contact us"
link below to send us a quick email or
look at our
Business
Links page which may have
alternative "Finance Solution"
providers. |
