Invoice Finance Glossary

The following section details terms which are commonly associated with invoice finance.

If you are looking for a specific term, click one of the following links to go to the relevant section:

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Inter Factor Handover
A procedure, prescribed by the FDA, setting out a method to effect a smooth transition, from one factor’s facility, to another. – This covers money received, post transition, by the outgoing factor and advice to the client’s customers of the change.

Investment controller
Where invoice discounting is applicable, the investment controller, is responsible for reconciling movements on your sales ledger, with sums received and notified to the discounter.

Invoice Discounting
Like factoring, invoice discounting is a form of commercial lending aimed at organisations involved in B2B sales. An invoice discounting company will allow you to release the cash tied up in your unpaid invoices, usually you can receive this cash within 24 hours of raising your invoices.

Learn more about invoice discounting or get a quote instantly online.

Invoice Finance
A form of asset based lending, invoice finance allows commercial organizations to release the cash tied up in unpaid invoices. An invoice finance company can advance up to 90% of the value of unpaid invoices, typically within 24 hours of the invoice being issued.

Invoice finance is a broad term used to describe factoring, invoice discounting, recourse factoring, invoice factoring and confidential invoice discounting.

Invoices
Invoicing is the process through which many companies claim payment for goods delivered or services rendered. At the point in the transaction in which both sides agree that the goods or work meets the stipulated conditions, the company performing the work delivers an invoice to the company receiving the work.

Invoices are a legally recognised asset and as such can be assigned from the company which has performed the work to another party. Two points can thus be made: i) unpaid invoices are frequently the largest asset a company owns and ii) invoices can be used as security and borrowed against.

Minimums
This sum is set in relation to anticipated turnover, whereby a prospective client obtains a reduced pro-rata, service charge percentage based on anticipated level of turnover.

Touch is the UK’s leading independent factoring and invoice discounting broker, helping over 500 businesses explore their financing options every month. Our experts are always on hand to answer any of your questions – 0845 388 9725, or you can compare factoring quotes instantly online >>