Unlock the cash in your invoices via debt factoring & invoice discounting

Most businesses see a slow down in business over the Christmas period and the 2010 festive season was certainly a silly season this year with the continued uncertainty in the economy, poor levels of bank lending and to top it off, the big freeze.

Its no surprise then that many businesses will likely find themselves short of cash during the first quarter of 2011 and many businesses we speak to have said that whereas 2-3 years ago, they would dip into their overdraft, the facilities are just not there in the current climate.

The good news is that it is highly likely to release the cash tied up in your invoices and unpaid invoices using debt factoring or invoice discounting.

As the banks have withdrawn their lending levels to small business, factoring providers have increased their lending levels and is invoice finance is available for just about any type of business that provides goods or services on credit terms to its customer base. Invoice factoring is usually available for a new start business, or even those whom have had trading difficulties right up to well known blue chip companies and house-hold brand names.

Invoice discounting is usually provided within a confidential facility and whilst this affords you anonymity, in general your business may have to be a little stronger and more established to be eligible than for invoice factoring. The reason for this is that with factoring, the factoring provider will put in place, a suitable credit management system to collect payment for your outstanding customer invoices on your behalf. With discounting, your business has this obligation and as such, most start-ups don’t have a robust enough credit management system/department to manage the payment on its invoices.

Which ever the facility is best for your business, both factoring and discounting have the same core benefits, in that they release cash against unpaid invoices and provide your business (small or otherwise) with a very useful working capital facility!

For more info on how North West based Factoring Finance can help you unlock the cash tied up in your invoices simply get in touch…

Factoring Finance has a UK wide, independent broker network able to source the best invoice discounting and invoice factoring deals from numerous small business finance providers.

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