Factoring and Invoice Discounting
The owner manager's guide to all aspects of factoring and invoice discounting finance.
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Contents listed below
Contents
Introduction
1 WHAT IS FACTORING AND INVOICE DISCOUNTING?
Why your business needs cash – the funding gap
Overtrading and the advantage of flexible funding
How debtor based funding works
2 HOW DOES FACTORING AND INVOICE DISCOUNTING WORK?
What is factorable debt?
Advances
How much does it cost?
What happens if you suffer a bad debt?
What happens if your business gets into difficulty?
How does factoring and invoice discounting differ?
3 WHY USE THIS TYPE OF FINANCE?
4 HOW TO CHOOSE A LENDER
The factoring and invoice discounting market
What to look out for when choosing a lender
Services offered
Advances
Charges
Efficiency of factoring collections
Efficiency of operations
Ease of operation
Contract terms and notice
Other security or personal guarantees (‘PGs’)
Key point lender comparison
How not to choose a lender
Advice on finding a lender
Debtor finance enquiry form
5 USING DEBTOR BASED FINANCE IN PRACTICE
The ‘audit’ process
Take on and operation
Termination and changing lenders
6 WHAT ARE THE ALTERNATIVES?
Block discounting
Machinery dealer finance
Trade finance
Trade creditor funding
Construction contract funding
Letters of credit and loans against imports
7 KEY POINTS
