How to get your business invoices paid quickly
Why you should consider invoice discounting or invoice factoring
Making sure you get paid on time can make all the difference to the financialhealth and success of your business- whether you're just starting out or on a planned course of growth and development. It's often hard to dedicate enough time to chasing money and bad debt when you're busy with day-to-day business. So if you're finding your debtor days slipping, or just need to know that your cash flow will not start to become a problem, invoice discounting or invoice factoring may be an answer.
Get an online quote for invoice factoring
Get an online quote for invoice financing
What is invoice factoring?
If you do not have the resources and information systems in place to efficiently collect payment for your business invoices you could consider invoice factoring. Invoice factoring is where the debt collection and ledger management are transferred to a factoring services company. Factoring services companies vary in size and structure - you could find a factoring service offered by a specialist department within a bank or large financial institution, or the factoring service couldbe provided by a small to medium-sized independently owned company.
The factoring services company will fully manage your sales ledger and provide you with credit control and collection services for all your outstanding debts. You send all your business invoices to the factor who will pay you between 80 and 90% of the business invoice amount within an agreed time frame (can be as little as 24 hours). When your customer pays the invoice the factor will deduct their charges, usually a % service charge based on invoice value plus interest on the money already paid to you, before making a final balancing payment to you. Bad debt provision is sometimes available but will often incur additional charges.
Get a quote for invoice factoring from Lloyds TSB Commercial Finance
Benefits of invoice factoring
Invoice factoring:
- Enables you to raise cash against your business to business invoices
- Improves cashflow
- Lets you buy more competitively from your suppliers by obtaining early payment discounts
- Saves you time as you outsource your internal invoice ledger management
- No need for you to spend time and money chasing late payments
- Offers flexible limits as your business grows.
The difference between invoice factoring and invoice discounting
Invoice discounting or invoice financing is similar to invoice factoring except that you remain responsible for collecting payments from your customers. The advantage is that you maintain the relationship and contact with your customers but still benefit from guaranteed payment of your invoices. The invoice factoring service provider will charge a % of the invoice value as their fee.
Benefits of invoice financing
Invoice financing:
- Releases cash into your business
- Provides up to 90% cash advances on the value of invoices
- Makes cash available within 24 hours of raising your invoice
- Improves cashflow
- Can enable you to buy more competitively from your suppliers as you can negotiate early payment discounts
- Offers flexible limits - the more you invoice the more funding is made available.
Get an invoice discounting quote from Lloyds TSB Commercial Finance
How to get your business invoices paid quickly
Why you should consider invoice discounting or invoice factoring
Making sure you get paid on time can make all the difference to the financialhealth and success of your business- whether you're just starting out or on a planned course of growth and development. It's often hard to dedicate enough time to chasing money and bad debt when you're busy with day-to-day business. So if you're finding your debtor days slipping, or just need to know that your cash flow will not start to become a problem, invoice discounting or invoice factoring may be an answer.
Get an online quote for invoice factoring
Get an online quote for invoice financing
What is invoice factoring?
If you do not have the resources and information systems in place to efficiently collect payment for your business invoices you could consider invoice factoring. Invoice factoring is where the debt collection and ledger management are transferred to a factoring services company. Factoring services companies vary in size and structure - you could find a factoring service offered by a specialist department within a bank or large financial institution, or the factoring service couldbe provided by a small to medium-sized independently owned company.
The factoring services company will fully manage your sales ledger and provide you with credit control and collection services for all your outstanding debts. You send all your business invoices to the factor who will pay you between 80 and 90% of the business invoice amount within an agreed time frame (can be as little as 24 hours). When your customer pays the invoice the factor will deduct their charges, usually a % service charge based on invoice value plus interest on the money already paid to you, before making a final balancing payment to you. Bad debt provision is sometimes available but will often incur additional charges.
Get a quote for invoice factoring from Lloyds TSB Commercial Finance
Benefits of invoice factoring
Invoice factoring:
- Enables you to raise cash against your business to business invoices
- Improves cashflow
- Lets you buy more competitively from your suppliers by obtaining early payment discounts
- Saves you time as you outsource your internal invoice ledger management
- No need for you to spend time and money chasing late payments
- Offers flexible limits as your business grows.
The difference between invoice factoring and invoice discounting
Invoice discounting or invoice financing is similar to invoice factoring except that you remain responsible for collecting payments from your customers. The advantage is that you maintain the relationship and contact with your customers but still benefit from guaranteed payment of your invoices. The invoice factoring service provider will charge a % of the invoice value as their fee.
Benefits of invoice financing
Invoice financing:
- Releases cash into your business
- Provides up to 90% cash advances on the value of invoices
- Makes cash available within 24 hours of raising your invoice
- Improves cashflow
- Can enable you to buy more competitively from your suppliers as you can negotiate early payment discounts
- Offers flexible limits - the more you invoice the more funding is made available.
Get an invoice discounting quote from Lloyds TSB Commercial Finance