B Through invoice discounting, youb ll receive a portion of the outstanding invoice (used as collateral for a loan) upfront, helping the business with cash flow in the short-term. When the invoice is paid, youb ll receive the outstanding amount, minus a small service charge for the invoice discounting service).
To secure finance through invoice discounting there is no need to own any assets, which not every business does. Instead, the outstanding invoices are used as collateral. It is a private service that allows you to remain completely in control of your credit collection from clients, with no outside person or service contacting your clients to collect outstanding payments.
In terms of looking after your budget as a business, invoice discounting is a great way to maintain a greater level of control over your finances. You can only take out cash that is outstanding and owed to the business. That way, you are not putting at risk the future of the company by becoming reliant to finances outside of your limits.
To find out more about invoice discounting, as well as other commercial financial services such as bad debt protection, bridging loans and asset-based lending, contact the First4Commercial team on 01277 620 083 or firstname.lastname@example.org.]]>