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Many banks are telling businesses that they cannot have overdraft facilities and must either factor or invoice discount to receive funding for working capital – stock and accounts receivable.
Invoice discounting and factoring have always been a law unto themselves and it is important that you understand the differences from normal bank borrowing.
This module covers whether this form of finance is right for you, the pro and cons of using it, as well as all the different charges and the levels at which they ought to be set to be competitive.
Content Headings of Module
- Feedback from you about our advice
- Frequently asked questions
- Pros and cons of Invoice discounting
- How Factoring differs and what it says about you by your customers and by your bank
- Relative costs of Invoice Discounting v Overdraft
- Administration charge
- Discount charge
- Drawdown charges – CHAPS or BACS
- Pay-in charges to Trust account
- Hidden charges because of delayed clearing of pay ins
- Using your bank’s invoice discounter or others
- Target rates for invoice discounting
- Draft Bank Letter Suggestions
- Summary
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