Who's Suitable To Use Invoice Discounting?

In the UK over 50,000 organisations are already taking full advantage of an Invoice Discounting or Factoring facility. It is a widely used form of finance among industries such as Recruitment, Manufacturing and Construction.

Your business could be suitable to use Invoice Discounting if you:

  • Provide goods and/or services to other businesses
  • Have a projected annual turnover of more than £50,000; and
  • Issue your customers with credit terms of between 30 and 90 days

If you can answer yes to the above three questions then your business then chances are your business is suitable to use Invoice Discounting.

Company structure also bears no weight on whether you can use Invoice Discounting. Sole traders, partnerships and limited companies are all suitable to use the service.

Invoice Discounting can also be suitable for your business if you are a

Startups

Raising finance as a startup is often a difficult task with many lenders requiring you to jump through numerous hoops to provide you with half the cash you’re looking for.

Invoice Discounting is an ideal form of business finance for startups due to finance being secured against your unpaid invoices. In most cases removing the need for personal/director guarantees.

If you’re comfortable managing your sales ledger, credit control and collecting payment from your customers then Invoice Discounting could be the flexible funding you need to help grow your business.

Growing businesses

Many businesses feel the strain on their cashflow as they try and grow. Using an Invoice Discounting facility you can put the cash you’ve already earned straight back in your business, without the need to wait 60 days for payment.

You can however allow your lender to manage these functions and still benefit from releasing cash from your unpaid invoices. If this is of interest to you then Factoring may be a more suitable product.

Struggling businesses

Is your business is struggling to bridge the gap between raising invoices and receiving payment?

If so Invoice Discounting could be the ideal financing solution to help you grow your business. With the average number of days for invoices to be paid currently 61 days it’s easy to see why thousands of businesses are struggling.

In the UK over 50% of all invoices lie unpaid and with over 4.4 million businesses that’s a huge strain on business owners, especially smaller businesses.

How much cash could you release from your unpaid invoices? Get a quote online now >>

Suitable Industries

In some industries Invoice Discounting is essential to helping businesses grow. For example at any one time a third of all recruitment companies use Invoice Discounting.

Here are some of the industries which commonly use Factoring and Invoice Discounting:

  • Recruitment
  • Construction
  • Manufacturing
  • Couriers / Logistics
  • Wholesalers
  • Printers

How much cash could you release from your unpaid invoices? Get a quote online now >>

Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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