Invoice Discounting and Factoring
Import and Export Finance
Invoice discounting, the fastest growing form of debtor financing, is a way of securing working capital against the security of your unpaid invoices. The lender will advance you a percentage of the value of the invoices you raise (50% to 90% normally dependant on your industry and type of customers) and will then pay you the balance when your customer settles the invoice. The lender will charge interest on the amount borrowed plus a service charge on the total value of invoices. This type of discounting is referred to as ‘confidential’ as your clients will not know you are raising finance on the invoices.
Factoring is similar to invoice discounting above but the key difference is that the lender takes responsibility for collecting the debt from your customers making it therefore ‘Non-confidential’ as far as your clients are concerned.
With both these types of invoice finance, insurance is available to protect you against loss if a customer ceases trading.
If you need working capital fast, invoice finance may be right for you. Call Knightsbridge now on 0203-597-0124.
