Invoice Finance / Stock Finance

When seeking to raise finance against 'working assets' in a business, the 'debts' owed to or by the business derived from invoices raised to customers (the 'sales ledger') and from suppliers (the ‘purchase ledger’), can be a valuable Cashflow tool in accelerating and retaining capital within your business, especially if your business is:

Young but growing
Under cash-flow pressure
Struggling to pay suppliers on time
Seeking additional working capital funding
Planning an MBO
Acquiring other businesses
Considering outsourcing its credit control or payroll functions
Already factoring/invoice discounting and want a competitive alternative

Features and benefits of Invoice Finance:

Enables working capital to grow in line with sales
Provides financial headroom giving greater financial flexibility
Can provide funding independently of core banking thus maintaining bank credit facilities
Security rests in your sales invoices. Often used as an alternative to overdrafts or loans which usually require additional background security, that is not always available.
Reduces risks and administrative burdens
Credit checks available to minimise trading risk and gives peace of mind
Because customer invoices are generally considered by lenders to be a viable means of security on ‘stand-alone’ basis, ongoing funding may be acquired within an ‘Asset Based Lending’ package complimented by Asset Finance and Stock Finance
These ‘working capital’ facilities are available in a variety of options and can often be ‘tailored’ to meet the circumstances and needs of a specific business

Confidential Invoice Discounting

Up to 85% is made available within 24 hours of an invoice being raised. The remaining balance is made available when customers settle their outstanding invoices.
This facility is provided confidentially. The client retains their own credit control so customers remain unaware of the financing arrangements. The business should have good financial controls and a strong financial background.
Transaction funding such as mergers, acquisitions, MBO’s and MBI’s may well need additional headroom over and above invoice discounting funding. This can also be provided through an asset backed finance facility by releasing funds against other assets, such as stock, plant and machinery, land and buildings.
Invoice Discounting solutions tend to be tailored to specific needs for more mature businesses with proven track record.

Factoring

Disclosed to your trade customers with up to 90% advance released within 24 hours against outstanding trade debtor invoices
The factoring company will monitor and chase the debt on your behalf
The remaining balance is made available when customers settle their outstanding invoices.
This product is suited especially to growing businesses and new starts.
Flexible credit management is built into the agreement with statements and reminder notices issued to reduce the administrative burden on the business. Assistance with telephone credit control can be provided if required.
Credit vetting is available to assist in decisions about extending credit to an existing customer or taking on a brand new customer. This helps prevent bad debts before they occur.
Frees businesses from the hassle of sending statements and reminder notices

Stock Finance

Rarely available as a 'stand-alone' product, Stock / Inventory Finance may be used to compliment Invoice Finance and Asset Finance / Re-Finance as part of an Asset Based Lending (ABL) package.

Cash is generated by borrowing funds against stock by using:

1) The Stock Finance lender to make immediate 'cash' payment of supplier invoices so supplier discounts may be negotiated for early payment. The lender subsequently gives the borrower up to 120 days to repay.

2) The Stock Finance lender to make payment to the supplier within standard 30/60/90 day terms while giving the borrower extended terms of up to 120 days.

How does it work?

Offered in conjunction with Invoice Finance as part of an Asset-Based Lending (ABL) solution
Customer negotiates supplier terms in the normal course of trade.
These will normally offer the customer 30/60/90 days of credit
Subsequently the customer negotiates discounts from the supplier for ‘immediate’ payment of invoices
‘Stock Finance’ company re-invoices customer on 120 day credit terms and pays the supplier invoice
Customer retains own funds within the business for up to 120 days
And can settle ‘Stock Finance’ company at any time within those 120 days

Benefits

Compliments Invoice Finance to improve ‘working capital’ or replacing bank overdraft, loans and other cash-flow facilities
No additional security required – banks do not generally put a value on stock
Customer can either
Take advantage of an additional 120 days credit on top of standard credit terms offered by the supplier OR,
Negotiate the cash discount (as above)

B2B Cashflow Solutions - Working with You, for You.