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We can arrange finance against both new and old machinery. A valuation is required in all cases, which the lender will rely upon for their security. A typical deal involves the lender advancing 70% of the valuation, for both new and existing assets and repayment terms range from 1 year to 5 years.
Invoice Finance - Factoring and Invoice Discounting
The terms factoring and invoice discounting are often misunderstood. The distinction between the two is in fact very simple. Factoring involves a finance company using a company’s outstanding sales invoices as security for a loan. The company then agrees to outsource their sales ledger function, namely, their invoicing, credit control and debtor collection to the finance company.
Invoice Discounting also involves the finance company using outstanding sales invoices as security for a loan, but the company continues to run its own sales ledger function, raising its own invoices, carrying out its own credit control and collecting its own debts.
Factoring is generally suitable for businesses with turnover less than £1 million, whilst invoice discounting will be suitable for turnover in excess of £1 million.
Some invoice finance companies will allow businesses with turnover less than £1 million to use invoice discounting, providing that they have appropriately qualified staff to collect the outstanding debts, as well as adequate accounting systems and the ability to produce timely management information.
Financial Holdings has a thorough understanding of the invoice finance market. We have personal board level relationships with each and every of the invoice finance providers. We are able to match companies with appropriate lenders and negotiate the fees and terms of your invoice finance agreement on your behalf.
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For further information please contact:
enquiries@financialholdings.co.uk
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