Strategy
Consulting Business Banking
and Factoring
Strategy Consulting Business Banking and
Factoring
Strategy
Consulting - Factoring and Invoice Discounting
Strategy Consulting have a wide knowledge of the players in
the market, and know who is hungry for business and who are
specialists in certain industries. Their broking service puts
you in direct touch with UK factors and invoice discounters
who may be able to assist your business.
And
the Strategy Consulting service is free of charge.
What
is factoring?
Factoring and invoice discounting (known as debtor finance)
can dramatically improve your cashflow by releasing money
as soon as you have completed an order and raised an invoice
rather than having to wait for your customer to pay. This
makes them ideal for funding growth. Because it's linked to
sales, factoring or invoice discounting is ideal if your business
does not have the financial track record or security available
to negotiate sufficient overdraft facilities.
A
key advantage is flexibility. The amount you can borrow grows
in line with sales and it is often possible for you to repay
bank facilities and release previously pledged security.
Typically,
when factoring is set up you can borrow about 80% of the value
of your approved invoices less than 90-120 days old. Thereafter,
cash will be made available against invoices on a daily basis
with the remaining 20%, less charges, once the value of the
invoice has been collected. Once the system is established,
the level of advance you receive against invoices depends
on a number of issues, but can rise as high as 100%.
Once
in place, there is no limit to the amount you can borrow as
the finance is linked directly to sales. This is in sharp
contrast to bank overdrafts, which require regular re-negotiation
and arrangement fees.
For
further information on Strategy Consulting Business Banking
and Factoring visit the Strategy Consulting Website.
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