Factoring/Invoice Discounting

Factoring/ Invoice Discounting
Invoice Discounting is simply the use of outstanding trade accounts to raise working capital. Invoice Discounting is not a loan. It is a means of putting your business’s most vital asset (the debtors ledger) to work to bridge the cash flow gap between the time your products and/or services are provided and/or the time payments are received. How does Invoice Discounting work? As you deliver your goods/services to your customers, the invoices you raise may be sold to the factoring company, freeing up to 80% of their value almost immediately. The remaining 20% is advanced on a monthly basis as debts are collected. You simply forward copies of the invoices to the factoring company. Funds raised are usually deposited to your bank account within 24 hours. You retain control over your accounting functions, credit management and collections and most importantly the ongoing relationship you have with your customers.

What application information is required?
Please submit a FACTORING application form. [not yet available]

Application requirements:
A personal Asset and Liabilities Statement.
3 Years Financial statements.
Current Debtor & Creditor Lists.
Submit a factoring application

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Disclaimer: Multilease has made every effort to ensure that the material contained on this page is factually correct as at 26th March 2010. However, Multilease does not purport to provide taxation or legal advice and recommends that you consult your financial or taxation adviser for specific advice suited to your own circumstances. Multilease shall not be liable for loss or damage sustained by person acting in reliance of this material.