1 / 5

How to Draw Money against Your Unpaid Invoices?

Invoice financing involves selling your unpaid invoices to a third party company for a fee. In return, they will allow you to draw funds against the money owed to your business.

fvchamp
Download Presentation

How to Draw Money against Your Unpaid Invoices?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Callustoday:08452514040 HomeFunding SolutionsGetaQuoteFinanceGuidesBlog ImproveYourCashFlowwithInvoiceFinance:HowtoDrawMoneyagainstYourUnpaidInvoices AboutUs Contact JoinourNetwork RecentPosts Benefits ofInvoiceDiscountingtoBusinessesAdvantagesofInvoiceDiscounting HowAssetFinancecanGrowyour Business5Benefits ofInvoiceFactoring Improve Your CashFlowwithInvoiceFinance:How toDrawMoneyagainstYour UnpaidInvoices Categories AdviceNews Invoicefinancinginvolvessellingyourunpaidinvoicestoathirdpartycompanyforafee.Inreturn,theywillallowyoutodrawfundsagainstthemoneyowedtoyourbusiness. Solutions Therearetwomaintypesofinvoicefinancing:factoringanddiscounting. FollowUs

  2. @fundingsol Doesanyonefancy2ticketsfortherugbyleagExpand INVOICEFACTORING Invoicefactoringinvolveshandingyourinvoicesovertoaninvoicefinancier,whowillmanageyoursalesledgerandcollectmoneyfromcustomersonyourbehalf.Whenyouraiseaninvoice,theinvoicefinancierwillpurchasethedebtowedtoyoubyyourcustomer,makingapercentageofthecost(usually85%)availabletoyouupfront.Theinvoicefinancierthencollectsthefullamountdirectlyfromyourcustomer,makingtheremainingbalanceavailabletoyou.Youwillthenhavetopaytheinvoicefinancierinterestandfees. FundingSolutionsUK @fundingsol BrokerInsight:IanHepworth,FundingSolutio FundingSolutionsUK @fundingsol BenefitsofInvoiceDiscountingtoBusinesses INVOICE DISCOUNTING Invoicediscountingissimilartoinvoicefactoringinthatitenablesyoutosellyourinvoicestoaninvoicefinancier,whowilllendyoumoneyagainstyourunpaidinvoices.However,inthisinstance,theinvoicefinancierwillnotmanageyoursalesledgerorcollectdebtsonyourbehalf.Whenyourcustomerspaytheiroutstandinginvoices,youwillhandthemoneyovertoyourinvoicefinancier, reducingtheamountyouowe. FundingSolutionsUK @fundingsol InJulywestructuredfacilitiesforawellknown FundingSolutionsUK @fundingsol AdvantagesofInvoiceDiscountingwp.me/p4w THE PROSAND CONSOFINVOICE FINANCE Invoicefinancingcanprovideyourcashflowwithasignificantboost,whichcanbevaluableifyourbusinessislackinginworkingcapital.However,thecostofusinganinvoicefinanciermeansthatyouwillincurareductioninyourprofitmarginoneachorderorserviceyoufulfil.Furthermore,yourchoseninvoicefinanciermayrestrictfundingagainstpoorqualitydebtors,whichmeansthatyouwillneedtofindawaytomanagefundingfluctuations. FundingSolutionsUKRating MEETINGTHE CRITERIAFORINVOICE FINANCE FundingSolutionsUK scoredanaverageof4.5 /5.Basedon12customertestimonials. Invoicefinancerequirementsvary,soyouwillneedtoensureyourbusinessmeetsastringentsetofrequirementsbeforeyourushofftofindaninvoicefinancier. • Yourbusinessmaybesuitablefor invoicefinanceifithas: • Agoodspreadofcustomers—youmayencounterfundingrestrictionsifasinglecustomeraccounts formoreone-thirdofyourturnover • Simple,non-contractualdebts • Lowlevelsofdebtmorethanthreemonthsoverdue • Yourbusinessmaybeunsuitableforinvoicefinancingifit: • Sellsproductsorservicestothepublic—invoicefinanceisonlyavailableforbusinessthattradewithcommercialcustomers

  3. Countless,smallinvoices • Complex,contractualdebts • Ifyourcompanyexportsgoods,youmaybeabletobenefitfromaspecialtypeofinvoicefinancing–exportfinancing.Whenyouuseexportfinancing,yourchoseninvoicefinancierwillworkwithapartnerabroad,whowillberesponsibleforcollectingpaymentsfromcustomersinthecountrytowhichyou export. • Calculatingthecostofinvoicefinancing • Ifyouarelookingtouseinvoicefinancing,youshouldcomparetheinterestcharges,managementfeesandadditionalcostsassociatedwitheachserviceprovider.Youshouldalsoconsiderthenoticeperiodforendingtheservice—mostfinanciersrequireatleastthreemonths’notice,butsomehavenoticeperiodsofupto12months. • Interestcharges • Interestchargesoninvoicefinancingagreementsworkinthesamewayasbankinterest.Mostinvoicefinancierscalculatechargesdailyandapplythemmonthly. • Managementfees • Managementandadministrationfeesforinvoicefinancingwilldependonseveralfactors,includingyourturnover,invoicevolumeandthenumberofcustomersonyourbooks.Factoringfeestypicallyrangefrom0.75%to2.5%ofyourturnover,whilethosefordiscountingrangefrom0.2%to0.5%ofyourturnover. • Creditprotectioncharges • Ifyouenterintoanon-recoursefactoringarrangement,youwillincurcreditprotectioncharges,asyourinvoicefinancierwillbeliableforanybaddebts.Feesvary,dependingonyourfinancier’sassessmentofthelevelofrisk.However,theytypicallyrangefrom0.5%to2.0%ofyourturnover. • Choosinganinvoicefinancingprovider • Awiderangeoffinancialinstitutionsandindependentprovidersofferinvoicefinanceservices,soitisadvisabletoapproachmorethanonebeforeyounegotiateadeal.Ifyouareunabletodoyourownresearch,youmaywishtoenlistthehelpofabroker,whowilllookintoyouroptionsandnegotiateadealonyourbehalf. • FundingSolutionsarespecialistsininvoicefinanceandcanhelpyourbusinesstodayhttp://www.fundingsolutions.co.uk

  4. MORE FROMMYSITE BenefitsofInvoiceDiscountingtoBusinesses Welcome AdvantagesofInvoiceDiscounting MerryChristmasfrom FundingSolutions! WhatShould YouConsiderWhenSettingUpAnInvoiceFinanceFacility? 5BenefitsofInvoiceFactoring GOOGLE+ IanHepworth Follow 0 PostedonJune13,2014byIanHepworthbyIanHepworth.ThisarticlewaspostedinNews.Bookmark thisarticle. AboutIanHepworth Funding Solutions Viewallposts byIanHepworth→

  5. General Home Funding SolutionsGetaQuoteFinanceGuidesAboutUs Contact ServicesInvoiceFinanceCreditInsuranceAssetRefinanceAssetFinanceInvoiceFactoring InvoiceDiscountingLenderServicesImportFinance Other FAQs TestimonialsRecentDealsBlog Sitemap SignupforoureNewsletter Enteryouremailaddr Connectwithus: Pleasecalluson -08452514040|Alternativelyemailfinance@fundingsolutions.co.uk Funding SolutionsLimited,TheLansdowneBuilding,2LansdowneRoad,Croydon,Surrey,CR92ER ©2009-2014Funding Solutions

More Related