invoice discounting

A confidential facility.

The roots of the facility lie with Factoring in as much as the facility is cashflow linked to outstanding sales invoices. The difference to Factoring lies in customer awareness. With a Factoring facility every invoice must have an assignment to the Factor. This is in the form of a stamp telling the customer that the invoice has been assigned to the Factor, and payment must be made to them. Invoice Discounting is confidential so there is no such disclosure. The facility is available to businesses, minimum turnover around £0.25m with established ledger management systems. In an example a printing company with turnover of £7m was looking for extra funding lines to pursue an acquisition policy. At the time the Invoice Discounter became involved the business had outstanding sales invoices of £1.4m. The business had operated on an overdraft of £0.5m, which, after the implementation of an Invoice Discounting line was reduced to £50000. The Invoice Discounter offered a 75% facility, releasing just over £1m. With the increased funding the printer was able to purchase a smaller local printer. Again, and as with Factoring, the extra funds made available could have been equally well spent on stock / raw material purchases, sales initiatives, employee remuneration etc etc     –––––––––––––––––––––––––––––––––––– Factoring Partners, P.O. Box 1696, Stratford upon Avon, Warwickshire CV37 0ZZ Tel/Fax: 01789 730137, Mobile: 07966 492154