Invoice Discounting Facility

The facility Invoice Discounting is used to generate funds against the sales ledger in much the same way as factoring. The main difference is that the company retains responsibility for chasing their own ledger.

Invoice Discounting

Rather than using a factoring company or bank there is now a peer to peer facility that works by multiple funders lending against the invoice.

This type of facility is available to companies that have excellent audit trails, and can demonstrate the ability to collect the debt in-house.

Many companies prefer invoice discounting because it enables them to maintain their existing relationships with their customers, as well as being cheaper in terms of the service charge involved.

For those companies who do not wish for their customers to know of a third party involvement, a Confidential Invoice Discounting facility is the best option.

To complement the invoice discounting facility, a number of funders will also look at other assets within the business with a view to providing additional funding against plant and equipment, property and stock. This Asset Based Lending as it is known, can be particularly useful to fund seasonal stocking requirements, or to provide increased leverage in the short term to effect management buy outs.

Whilst banks do push invoice discounting to their clients,an independent invoice discounter can offer so much more than the bank:

To Summarise...

Invoice Discounting is an ever growing sector of the commercial finance market and one Sterling Capital Reserve have fully utilised for clients.