Types of Invoice Finance
Confidential Invoice Discounting
The product where the lender is most closely involved. Once the company has paid, your factoring company will collect the debt, deposit the remaining balance and take their fee. They will provide ‘credit control’ to ensure customers pay on time. Factoring facilities provide both the advanced funding and credit control, on a disclosed basis with the client customers.
You send the invoice details to your invoice finance provider, the provider then makes the funds available immediately to you. Once your client pays you, the remaining balance of the invoice is available for you to withdraw and the finance provider take their service fee. Raise your invoice and get paid quickly.
Selective Invoice Financing
This doesn’t involve an agreement with the sales ledger, so you choose which invoices you’d like to advance. This means you keep control and have flexibility to adjust your cash flow when you needed.