Invoice discounting is an invoice finance facility where your business’ unpaid invoices are used as collateral for a loan.
Invoice discounting falls under the umbrella term ‘accounts receivables finance’ which is funding received for your business based on invoices you have issued but where you have not received payment.
Invoice discounting improves your cashflow. If you have supplied goods for a large contract, you may be waiting for the payment for 90 days. If, during that time, you receive another large order, you may not have the cashflow available to purchase the raw materials in order to supply that order. This will restrict the growth of your business. Invoice discounting can effectively release funds tied up in unpaid invoices and help your business continue to trade and profit.
We can source funding against both ‘application for payment’ and ‘payment certificates’. This ensures you can access capital when you need it and concentrate on running your business. Invoice discounting is a source of working capital finance. Invoice discounting offers your business flexibility with you deciding which invoices you would like to finance (there is no requirement to commit your total sales ledger).
The benefits of invoice discounting are that by sourcing funding through Wharf Financial Services you will receive access to experienced commercial brokers who can ensure the funds are secured quickly. Our brokers have close links with major invoice discounting suppliers and an in-depth knowledge of property development and related sectors. Invoice discounting works well for the construction, logistics, manufacturing, printing, recruitment, transport and wholesale industries, to name a few. This enables us to source the funding to best sort your needs and ensure you receive the optimal level of ongoing service. With improved, predictable cashflow, you will be able to look
ahead for your business and manage your growth.
Businesses usually pay a percentage of the invoice amount to the lender as a payment for borrowing the funds.
Confidential Invoice Discounting offers the same structure and benefits of Invoice Discounting, but the facility is structured so that the finance secured is invisible to your debtors.
If you have questions about how invoice discounting and/or confidential invoice discounting can work for your business please get in touch.