Invoice financing, whether in the form of invoice discounting or invoice factoring, is a way of increasing a company’s cash flow without incurring more debt. Rather than being forced to extend an overdraft or arrange a loan, both of which are likely to involve significant rates of interest, a company can instead arrange to have […]

Invoice factoring and invoice discounting are ways for a company to raise much needed cash against unpaid invoices. This method of raising finance, provided by brokers such as Touch Financial provides a viable alternative to a company having to extend its overdraft or seek a bank loan in a bid to maintain its cash flow. […]

Invoice discounting services are provided by banks and other financial institutions.  By using invoice discounting, a business can gain access to the money due on invoices for work completed before those invoices have been paid.  Invoice discounting, like invoice factoring, is a major form of invoice finance, and can form an integral part of the […]

Companies that are thinking of using invoice discounting services need to understand the potential costs involved. While it seems like an ideal solution and for many it is, no service is free and companies need to weigh the costs against the benefits of employing an invoice discounting firm. Main Cost – Interest The main cost […]

Businesses in need of fast, affordable financing can use invoice discounting services. Unlike business loans, these discounting services provide cash within a very short period of time. There is little approval involved if the company has invoices to sell, making this ideal for businesses that need access to money quickly. Features Invoice discounting services involve […]

Just as banks, finding they are short on funds, will sell mortgages they hold to other lending institutions, so too can some businesses sell their invoices to ensure they remain able to pay their overheads. A sales invoice is in effect an IOU. Customers receive goods or services with a set amount of time to […]

There are many similarities between invoice discounting and invoice factoring, to the extent that many people think they are one and the same thing. However, this is not the case. With invoice factoring, the factoring company takes over the collection of your sales invoices and provides you with a certain percentage of the outstanding amount […]

Invoice finance includes both invoice discounting and factoring; these are methods of raising funds against the value of a company’s unpaid invoices, also known as ‘receivables’.  In many ways, they offer simpler routes to raising cash and do not require security or guarantees, as do many overdraft or bank loan arrangements.  The principal difference between […]

If a business wants to improve its cash flow, it is possible to retain control over the company sales ledger and still draw down funds against company invoices. Established companies that sell services or products, and are paid in arrears, can benefit from invoice discounting. A turnover of a minimum £500,000 per annum is the […]

Invoice discounting services are normally available to those types of businesses that sell on products or services to commercial enterprises, and receive payment in arrears. Larger businesses with an annual turnover in excess of £500,000 may benefit from invoice discounting. Increasingly, though, businesses with a smaller level of turnover are being offered invoice discounting services. […]