Brooklands Commercial Finance was able to guide us through the maze of factoring and invoice discount companies. They introduced us to the most suitable lender and then negotiated the best deal for us.
Factoring and Invoice Discounting
Cash flow problems are the top reason that businesses fail. However with the availability of Factoring and Invoice Discounting these failures can be reduced. Some of the benefits to be derived are:
- It generates immediate working capital
- It reduces the pressure on your cash flow
- It links cash flow to sales allowing your business to grow
- It enables you to negotiate early settlement discounts
Brooklands Assistance
Obtaining the best factoring or invoice discounting agreement can be very difficult for a business acting on its own. Brooklands Commercial Finance will help you to decide whether Factoring or Invoice discounting is the most appropriate route for your business. Is it best to have disclosed factoring and to eliminate the time and money spent on credit control and debt collection or is it better to have confidential invoice discounting and for your customers to be completely unaware of your financial arrangements? Or is a hybrid solution the best option for you?
There can be many pitfalls when choosing a factoring or invoice discounting company. Whilst they will all charge a service fee, normally as a percentage of sales and an interest charge, there can be many other costs that are not in the headline figures. These include:
- Minimum charge
- Bank transfer fees
- Quarterly audit fees
- Re-factoring charges
- Tied into a 1 year or 3 year contract
- Concentration limits
- Restriction on exports
Contact Brooklands Commercial finance who have access to over 50 factoring and invoice discounting providers and will help you select the best for you.
