Factoring and Invoice Discounting, Midlands, Rugby, Warwickshire
Factoring and Invoice Discounting are both forms of invoice finance, where a loan is provided to your Company, based on the outstanding invoices (debts) of the Company. Therefore, if you qualify for invoice finance and you have outstanding invoices from your customers for services already provided, or products already supplied, the financier will provide the business a loan of typically between 80-85% of the value of the invoices. They then chase in the debt and forward a further sum to you less their fee once collected.
The two types of invoice finance are explained in brief below:-
Factoring / What is Factoring?
Where finance is provided on your invoices but where THE FINANCIER (the factor)chases in the debts. This is typically the more expensive of the two invoice finance types due to the extra work involved.
Invoice Discounting / What is Invoice Discounting?
Where finance is provided on your invoices but where YOU chase in the debts. This is typically the less expensive of the two invoice finance types due to the financier (the invoice discounter) undertaking less work.
Bridge Newland Limited have close partnerships with a number of factors and invoice discounters based nationwide meaning that you obtain the most competitive rates and expert advice when sourcing invoice finance. Therefore, call us at our Midlands office in Rugby, Warwickshire free on 0800 612 6197 for a quotation or fill out our contact form below.