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Commercial Finance in Edinburgh

Edinburgh has been a busy commercial centre for literally hundreds of years. Intense commercial activity in the city resulted in a very strong financial sector. Some of the world’s largest banks and insurance companies were founded in Edinburgh, and it is home to one of the largest financial sectors in the UK after the City of London.

For local businesses, this is good because they have plenty of choice when it comes to financial services. However, there is plenty of access to traditional financial products. Increasingly, Scottish and UK companies are finding that traditional sources of finance no longer meet all of their needs. Due to this, they are looking for alternatives.

More and more, they are borrowing the money they need using invoice financing services. Invoice factoring and discounting are becoming increasingly popular, and with good reason.

What is invoice discounting?

Invoice discounting is an innovative yet simple and effective form of commercial finance. It is a great way for businesses to raise money.

It allows companies to use the money clients owe as security for short-term loans. If a client owes £1,000, factoring companies will lend you up to £850 against their invoice. When the client pays their invoice, the £850 owed along with a fee and interest is paid to the factoring company.

The way the lending process is set up means customers will not see any difference. They will not likely be made aware that their suppliers are borrowing money.

The advantages of borrowing this way

How much borrowing the money will cost is known from the outset. With invoice discounting, the company borrowing the money is wholly responsible for ensuring that their client pays the invoices, so the loan can be paid off. This means they stay in total control of their finances.

This form of financing is great for managing cash flow issues. It helps firms to deal with seasonal fluctuations and to buy raw materials to take advantage of new business opportunities.

A company can get hold of cash quickly. This gives it a considerable advantage over competitors who are still seeking funding only from traditional financial institutions such as banks.

Who can use this form of commercial finance?

Any company can potentially borrow in this way. It is not restricted to specific industries. Companies do need to meet a qualification criterion, but the majority of companies have no problem in doing so.

Why use Invoice Finance Scotland?

Over the years, we have helped every kind of company from start-ups to PLCs with turnovers of over £50 million. Many of our clients are based in Edinburgh and Glasgow, but we have also helped hundreds of English and Welsh companies.

All of our services are tailored to meet the exact needs of each client.

Our team has years of invoice factoring and discounting experience. If we cannot help you via our invoice discounting service, we can usually suggest other ways for you to quickly and cheaply raise the money you need.

We are members of the National Association of Commercial Finance Brokers and maintain a strict code of conduct. This code ensures that the terms of your contract with us are fair, transparent and always adhered to.

IFS Guide
IFS Presentation
NACFB - Helping Fund UK Businesses  Federation of Small Business