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Working
Capital Facilities
Finance for day to day
trading
Invoice
Finance
Releases the cash tied up in
your sales ledger
• Rather than have to wait
until invoices are paid, you
can receive typically 80/85%
of the gross invoice value,
up front.
• You receive the balance
when your customer pays.
• Unlike an overdraft, there
is no limit to the amount
you can borrow as the level
of finance is directly
linked to the level of
sales.
The facility can be either
disclosed to your customers
or confidential
• Factoring is a full sales
ledger management facility,
which includes a credit
control service
• Invoice Discounting is a
confidential service. You
continue to manage your own
sales ledger and credit
control.
The costs to you form two
parts
• Interest on the money you
borrow, rates usually at a
similar level to that
charged on overdrafts
• A service fee, which will
reflect the number of
customers you have, your
annual turnover and the
volumes of invoices raised.
Typically this can range
from 0.75% to 2.5% of annual
turnover for a factoring
facility, significantly less
for invoice discounting as
only finance is provided
Credit insurance, protecting
you from non payment, can be
made available as an
additional service. Premium
costs will vary according to
the risk profile of your
customer base, typically
ranging between 0.5% to 2%
of turnover.
Trade Finance
The ability to finance one-off contracts (whether with UK or overseas customers) or contracts which do not meet the requirements of more
traditional working capital facilities.
Import
/ Export Finance
Advice and support on funding international trade, the use of
Documentary Letters of Credit, Bills of Exchange, Open Account, managing exposure to
exchange rate volatility, use of foreign currency accounts, etc. |
