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According to Nick Cookson, Senior Partner of Compare Factoring. “A common misconception of factoring and discounting often steers businesses away from looking at all of the funding options available”.
At a time when access to business credit and loans are restricted and overdrafts are being called in, sometimes with no warning, both Invoice Factoring and Invoice Discounting are proven, well-established products that are a fast and flexible way to raise capital.
“Invoice Factoring: The smarter way to improve your cash flow”
Invoice Factoring is where you send the lender a copy of your customer’s invoice. This enables you to immediately draw up to 95% of the invoice value. The lender will look after your credit control and secure payment from your client. This not only frees up your cashflow by bridging the gap between raising invoices and getting paid but also keeps on top of your credit control. You are then able to run your business without having to worry about late payments.
Invoice Discounting is where you are still in charge of your own credit control (hence why it is often referred to as ‘Confidential Invoice Discounting’. You raise the invoice, you chase the invoice and you take the payment. You send your lender a copy of the invoice who will give you up to 95% of its value straight away. Once the client has paid you, you pay the lender who simply deduct their fee.
Nick continues “Factoring and discounting are often misunderstood, but at Compare Factoring we try to re-educate people and explain why they are a great solution to cash flow problems.”
“Our advisors have a wealth of experience in the factoring market and coupled with working with over 40 of the UK’s leading lenders, we are able to help our clients understand their options and advise the right cashflow solution for their business.”
"Target Business Assist have provided our business with a new invoice factoring system that has dramatically improved our cash-flow position and flexibility with our clients..."
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