Invoice discounting is a type of cash flow finance, releasing cash against a company’s sales ledger. This flexible form of funding can be beneficial in bridging the gap often associated with trading on credit terms.
Typically, the invoice discounting company will release up to 90% of the value of an invoice within 24 hours of its issue, keeping cash flowing.
Invoice discounting is typically provided on a confidential basis and can be a useful tool for businesses trading overseas.
The Alan Boswell Group Difference
We aim to ease the burden that arranging insurance can bring. We pride ourselves on our personal approach, providing a dedicated contact to review your situation and provide continuous expert advice for your business or personal needs.
Key benefits of invoice discounting
There are many benefits to this flexible form of funding. Most importantly, it enables a business to bridge the gap between paying suppliers and receiving payment from customers.
Where the facility is provided on a confidential basis, customers are not aware of the invoice discounting company’s involvement. Additionally, unlike with factoring, your credit control function is kept in-house so you retain control.
Funding grows in line with turnover and, having this access to cash, can assist in securing early settlement discounts with your suppliers.
Invoice discounting can also provide additional bolt-on facilities, such as lending against other assets and bad debt protection.
Choosing the right invoice discounting company
With many invoice discounting providers to choose from, identifying the right fit in terms of funding levels, service, culture and cost, can be a challenge.
Hilton-Baird Financial Solutions works with Alan Boswell Group to help businesses find the right solution for their individual needs. Key benefits of using our services are:
Identify the best fit providers for your sector
Access to decision makers within finance providers
Save time and money in your search for funding by identifying the most suitable facilities in terms of funding, service levels and cost
Covid-19 has highlighted the importance of protecting businesses and decisions made. As well as contingency plans, it also means having appropriate management liability insurance (MLP). We explore directors’ liabilities and how MLP can mitigate financial losses.
Credit insurance compensates businesses when customers default on payment or become insolvent. We explore how agricultural and horticultural credit insurance can safeguard your farm or food business from financial loss.
