Funding Options

There is a wide range of funding solutions available to businesses that can be used effectively to grow the business, ease a gap in trading or purchase new assets as part of a new strategy. Whatever the funding requirements, we will deal with this in a quick, efficient, empathetic and professional manner.

For further information on some of the options available, click on the side panels.

Invoice Discounting & Factoring

Spot Factoring or Single Invoice Factoring

Asset Finance or Asset Based Lending

Mortgages & Secured Loans

Invoice discounting is a form of borrowing often used to improve a company's working capital and cash flow position. It allows a business to draw money against its sales invoices before the customer has actually paid. To do this, the business borrows a percentage of the value of its sales ledger from a finance company, effectively using the unpaid sales invoices as collateral for the borrowing. Invoice discounting is sometimes referred to as discreet factoring as it is essentially the same product as factoring; i.e. the business gets cash from its sales invoices earlier than it otherwise would. The key difference between invoice discounting and factoring is that with invoice discounting the credit control remains with the business owner, whereas with factoring the credit control is done by the finance company.

When a business enters into an invoice discounting or factoring arrangement, the finance company will allow the business to draw down a percentage of the outstanding sales invoices, usually in the region of 80%. As customers pay their invoices and new sales invoices are raised, the amount available to be advanced will change so that the maximum drawdown remains at the agreed percentage of the sales ledger. The finance company will charge a monthly fee for the service and interest on the amount borrowed against sales invoices. In addition, the finance company may refuse to lend against some invoices; for example, if it believes the customer is a credit risk, the finance company may refuse to lend against sales to overseas companies, or sales with very long credit terms or very small value invoices.

The lender will require a fixed charge over the trade debtors of the business as security for the funds it lends to the business under the invoice discounting or factoring arrangement.

Invoice discounting can be also be arranged confidentially, so customers won't know that a company is borrowing against its invoices. This is called confidential invoice discounting.

Business Angels

Venture Capital

Commercial Loans & Cash Flow Finance

Crowdfunding & Peer-to-Peer Lending (P2P)

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Contact SA Insolvency

Worcs office: 01905 354143
Derby office: 01283 480189