Business Finance Specialists
Invoice Discounting (also known as receivables or debtor finance) is now regarded as a critical and cost effective facility that is offered by most of the major banks and a number of specialist lenders.
If a business must give credit to make sales and is carrying trade receivables, invoice discounting can be an outstanding facility to fund the development of the business by allowing a business to borrow against its trade debtors.
The facility is targeted at a broad range of business sizes, to provide an alternative to. or complimentary to an overdraft facility for small to medium sized business through to the larger commercial market. Businesses can borrow amounts from $50,000 to $25,000,000 or up to 80% of acceptable outstanding trade debts.
An invoice discounting facility provides - subject to meeting lending criteria
The facility is priced and funds advanced on the strength of the debtors and the financial performance and management skills of the business.
The facility provides an initial funding to an agreed percentage against the current acceptable debtors ledger and thereafter funded on regular basis (usually weekly) against the invoices as raised. The regular funding is usually effected within 24 hours of the electronic presentation of a batch of invoices.
Invoice discounting provides cash against invoiced credit sales, so a business does not have to rely on the vagaries of debtor payments to provide cash flow.
Project Claim Finance for Sub Contractors - 29 August 2019 - due to prevailing conditions in the apartment construction sector most lenders who prevously provided progress claim finance have withdrawn the product.
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The working capital provided by invoice discounting improves a business’ cash position by enabling it to:
12 good reasons to consider using Invoice Discounting / Debtor Finance in your business