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Guide to Invoice Discounting

Finding an Invoice Discounter

Once the decision has been made that invoice discounting is the right solution to improve the cash flow of the business, it is then time to source a suitable discounter. Most finance companies and banks offer this service, although charges may differ considerably.

By performing a simple search on the Internet, several results for invoice discounters will be shown. Alternatively many high street banks have dedicated business specialists who are able to offer advice and information on the different products available and are able to provide help and assistance with any applications which are made.

When sourcing your invoice discounter, shop around and compare monthly fees, interest charges and cancellation fees.

The application process is usually quite straight forward. In addition to the application form the invoice discounter will insist on seeing past accounts and may withhold the rights to refuse any advance on invoices they consider high risk, this may be due to past payment history etc. The facility is usually made available as soon as 24 hours after the application has been approved.

Tips to compare invoice discounting companies;

  • administration fees
  • interest charges on the amount of the advanced used
  • termination fee to end the contract
  • monthly charges
  • special conditions

Before entering into an agreement of this kind it is important to fully understand the terms and conditions of the contract.

 

Guide Contents

Invoice Discounting
How Invoice Discounting works
Finding an Invoice Discounter
Frequently asked questions about Invoice Discounting
Where to get more help and advice about Invoice Discounting

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