Invoice Discounting
What does it provide?
- Often a one off transaction, no term contract required. Clients choose when to use us.
- Ideal for infrequent transactions with no fixed term agreements. When an invoice is raised to a debtor we will advance an agreed percentage (up to 90%). Once the debtor makes payment we release the balance less our fees.
How does it work?
- You have raised an invoice for work completed.
- We liaise with the client and ensure the due payment will be paid in full and on time.
- Commercial Factors & Finance purchase this invoice from you paying 90% of the invoice value immediately.
- When due, the client pays directly to a nominated account held by Commercial Factors & Finance.
- When payment is received we release the 10% owing, less our fees, to you.
Invoice discounting is not suitable for retailers or a business sector with a disproportionate level of trade disputes.
Invoice discounting is more suitable for a business when it has rapid sales growth, sells tangible goods or services, is trading profitably, regularly exceeds its current overdraft limit and has fully borrowed against fixed assets.
Call us to today (09 579-4204) for a no obligation assessment of what invoice discounting could do for your business.