What Is The Recourse Period? The recourse period is the time after which the invoice finance company withdraws funding against a particular invoice. This applies to both recourse factoring and recourse invoice discounting – facilities are also available without recourse i.e. non recourse which includes bad debt protection. The principle behind the recourse period is that [...]
Calculating the level of funding that will be released by invoice finance is not always as simple as multiplying the value if your sales ledger by the initial payment percentage or early payment percentage. There are other restrictions that you may encounter including: Prime Debtor Restriction – typically a percentage that limits the level of [...]
I have created a new page with a complete list of all the factoring tips, invoice discounting tips and invoice finance tips that I have been publishing via Twitter: http://www.glennblackman.co.uk/tips-about-invoice-finance-factoring-invoice-discounting/ They are just little helpful hints and tips for people using or considering using invoice finance. See the link on the right to follow me [...]
In this case study, we were able to assist a London based training company who were using overdraft rather than invoice finance. They needed working capital, some of which was being provided by an overdraft, but they also had issues handling their own invoice collections. Therefore, they also needed credit control support as well. We [...]
If you have a complaint about your invoice finance, factoring or invoice discounting facility we would like to hear from you as we can help you find alternative sources of funding. The majority of invoice finance customers are satisfied with their facilities – we know this as we survey invoice finance clients of numerous different invoice [...]
Confidential Factoring could be the right product for a business that wants the funding that factoring can provide and the credit control service but doesn’t want their customers to know that they are using such a service. Confidential factoring is different from Confidential Invoice Discounting in that factoring also provides that additional credit control, invoice [...]
Termination periods, the period of notice that an invoice finance client needs to give to their funder in order to terminate their factoring or invoice discounting agreement, vary widely between different invoice finance companies. Sometimes a client will be acceptant of a longer termination period in order to secure a good deal but in other [...]
It is easy to forget how old factoring is. I came across this useful little history infographic published by an american invoice finance exchange. Their page includes an interesting summary of the history of factoring and its growth in the 21st century with infographics on the history and also how factoring works. The article suggests that [...]
This client seldom borrowed money from their bank owned factoring company but they were looking for an improved deal in terms of the service charge that they paid for their factoring and the quality of the collections service (credit control service) that they received. Where a company isn’t borrowing significant amounts or even any funds, the collections [...]
Below are 5 tips about how to get approved for a factoring facility. These are simple things that you can do to improve you chances of being approved for factoring: 1) Invoice in arrears – factoring companies are all about the quality of your sales invoices. They will often overlook poor financials if your debtor book is [...]
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