Factoring, Invoice Discounting & Trade Finance
Factoring Financial Services - Invoice Discounting - Trade Finance
The largest asset a company usually has is their unpaid invoices. So, if you're looking to improve cash flow and are regularly counting off the days until your invoices are paid, then invoice discounting, factoring or trade finance could be the solution for you.
Invoice Discounting & Factoring
But what are they and what is the difference? Both invoice discounting and factoring allow you to access the money tied up in invoices you have issued, without having to wait for payment from your client. The main difference between the two is that invoice discounting is designed primarily for businesses which are large enough to have information systems that efficiently manage and collect outstanding invoices, whereas factoring sees a specialist third party take on responsibility for chasing and collecting payment, which is ideal if you have a low headcount because it's often cheaper than hiring someone.
Off Balance Sheet Teansactions
Trade finance is an 'off balance-sheet' transaction which doesn't affect your bank facilities. A third party will buy from or sell to your customers, assign a sales invoice, and from the proceeds pay you the profit. At BWG, we can also arrange for advances against credit sales to be agreed, or for VAT export finance.
To find out more about how you could access invoiced funds earlier, just contact a member of our team to find out more about our factoring services.
