Most businesses are aware of the principles to Invoice Discounting and Factoring. In simple terms finance companies and banks will advance against invoices/debtors in order to improve the cash flow of your business. Typically they will advance 80% of the value of the invoice raised, paying the balance upon receipt of payment of the invoice. These companies will charge fees based on the amount borrowed together with a service charge for managing your account. The majority of small businesses operate their cash flow with these schemes. What is less known throughout the business community is that a small number of these finance companies offer very competitive schemes and can be flexible when looking to take on a new company. For example, it is possible to borrow against assets other than debtors, like stock or fixed assets. This can be extremely useful to companies in need of additional cash - particularly when the need is urgent.

If you manage your cash flow solely through a bank overdraft, there is a good chance that you will be able to obtain an advance of monies by transferring to an Invoice Discounting or Factoring house. This may solve any cash flow problems you are experiencing, using your assets to fund development of the business.

Our members can advise as to the best places to look for the best offers and scheme to suit your business.