Invoice Discounting is a solution for larger businesses that could benefit from quicker access to the cash tied up in their sales invoices.
If you don't want to wait 30, 60 or even 90 days to release that working capital and your annual turnover is in excess of £250,000, then Invoice Discounting may be worth considering.
Invoice Discounting provides a cash injection that can enable you to make timely decisions for your business. Without the pressure of dealing with insufficient working capital, you can focus on a successful expansion, the development of a new product or financing a merger or acquisition.
However you choose to use the increased capital, an Invoice Discounting facility could give you greater buying power and a distinct advantage over your competition.
How does Invoice Discounting work?
Easily implemented within current finance systems, our Invoice Discounting clients retain control of their invoicing and sales ledger; and as the arrangement remains confidential, their customers are unaware of our involvement.
You invoice your customers directly; at the same time you send us a copy of the invoice for payment. We release up to 90% of the value of the invoice often within 24 hours. Once your customer has settled your invoice we send you the balance owed, less our agreed service fee.
With an Invoice Discounting facility, your working capital grows in line with your sales; the facility is revolving, which means that you don't need to make capital repayments, and that maximises your available cash flow.
Is Invoice Discounting right for my business?
If you sell your products or services on credit, but find that you have to buy before you get paid, then faster access to capital could be beneficial. The same is true if you have to hold high levels of stock. With the increased financial headroom offered by Invoice Discounting, you could negotiate better buying discounts, enjoy early payment benefits, or take advantage of profitable opportunities when they arise.
If your business trades on credit terms, has a strong financial background with good financial controls in place, and a turnover in excess of £250,000, then Invoice Discounting might be a valuable Invoice Finance solution for you.
What's more, if you need to further increase the funds made available to you, we can take assets like stock, plant, machinery, land or buildings into consideration. Find out more about the Asset Based Lending options we offer.
Personal relationships matter
If you are looking to develop a local, personal business relationship with a commercial finance partner who values customer service as much as you, then read our Business Charter; it outlines the full commitment we make to our customers.
Our goal is to help you find the right commercial finance solution for your business, and then to work with you to ensure that it meets your needs. We personally manage our Invoice Discounting relationships by providing our clients with an experienced, available local team that has knowledge of the region and the business area in which you operate, with a dedicated Client Manager as your contact point.
Contact us today
Call 0800 169 4356 to learn more about Invoice Discounting, Asset Based Lending or to discuss the other business funding options available through Lloyds TSB Commercial Finance.
Invoice Discounting is a commercial finance solution for larger businesses; if you have a smaller company (with a turnover in excess of £50,000) then Factoring could be a more appropriate business funding solution for you.
*Terms & Conditions apply - Read our Business Charter.
The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.