Invoice discounting and factoring are types of cashflow finance and is available to businesses who sell goods and services on a business to business basis, with no staged payments.
Cashflow finance/invoice factoring bridges the funding gap created during the period from the time of an invoice is issued to a buyer to the time that the buyer pays for the goods/services. Once the cashflow finance facility is set up, the business is able to access an advance on each approved invoice. Once the invoice is paid the balance less fees is paid to the business.
Businesses can select confidential or non-confidential facilities and in some cases protection against bad debt is an option.
Cashflow finance is provided by banks and other providers; applying to them is a relatively straightforward process, done face-to-face, by phone or online. In most cases there will be a minimum turnover of the business.
Businesses should regularly review whether the cashflow finance arrangements are the most suitable for their needs.
Barclays offers cashflow finance solutions tailored to your business needs. Follow the links below.