Should You Use Invoice Discounting?

Sometimes you need to raise capital quickly and discretely through the resources you already have within your company.  Invoice Discounting is one form of invoice financing that allows you to raise the cash you need without your customers or clients knowing you are using this method.  You can often get a very high cash advance using your customer invoices this way.

For instance, you may receive up to 90% of the value of your invoices immediately from a third party company.  You collect funds from your invoices as usual with payments going into your client account.  You are then accountable for service fees, which is actually taken before the third party company sends the balance you still owe from the invoices.

However, you need to make sure Invoice Discounting is actually the best means of raising capital for your financial means.  First Financial is ideal for those who already have an established credit control function.  Not only do you get the capital you need for your business, but your clients or customers also remain unaware that you have gone to outside funders since this could lead to misunderstandings among your customers.

Furthermore, this kind of funding is also mostly ideal for larger businesses that usually have a turnover of more than £1 million pounds a year.  Also, you need to make sure your relationship with your customers or clients are solid and long-standing since you are depending upon them to pay their invoices within a reasonable amount of time.  You may not be able to wait the 30 to 90 days they have to pay invoices, so you can use the funds you know will be paid.

Another advantage to receiving Invoice Discounting is that it is short term.  You do not have to worry about a long-term loan that you pay off over years.  Instead, you are simply receiving an advance on money you are already owed.  Using the services from First Financial can get you the capital you need right away.

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This Printer needed to change their current invoice finance provider who was tightening credit limits. First Financial arranged a new more flexible invoice discounting facility and negotiated an exit from their current provider.
Printing - London
Invoice Finance, Invoice Discounting

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