If you are looking for a quick way to generate cash for your business, invoice discounting is a good solution. An invoice discount broker can help you to understand and take advantage of this easy to use financial tool.
How invoice discounting works
With invoice discounting, a company is effectively using outstanding invoices as collateral for a loan. It is possible to raise a lot of money using this method, because a company can borrow against either just one of or all of its invoices. In many cases, outstanding invoices are a company’s biggest asset.
The firms we work with as an invoice discount broker will lend up to 90% against an invoice. This means it is possible to borrow £900 against a £1,000 invoice. Once the customer has paid the outstanding invoice, the loan, fees and any interest owed is paid.
Invoice discounting is fast
The best thing about borrowing this way is that it is not complicated. There are no long forms to fill in; we just need a little information and will make our decision quickly. The vast majority of loans are approved, so it is a reliable way to borrow money quickly. If you have borrowed from us in the past against that customer’s invoice, the process is even faster.
No questions are asked about how the money will be used, and there is no need for a business plan to justify the loan. The money can be used in any way a company likes. Invoice discounting or factoring is a great way to improve a company’s cash flow. You can use it to take you through a seasonal dip or to buy the raw materials you need to take on a big order. Many firms have to say no to some business opportunities simply because they do not have enough spare cash in their business to buy raw materials, or hire extra kit and people.
If you are looking for an invoice discount broker who can quickly get your company the money it needs, contact us at Invoice Finance Scotland. We have helped thousands of firms to get the money they need to improve and grow their businesses – and we can help you too.