Invoice Discounting

Invoice discounting can be a great source of cash for your business as it releases up to 90% of the cash tied up in your unpaid invoices.

At TML we are experts in finding and structuring invoice discount facilities for businesses. We work with you to make sure that the facility is structured so it meets the requirements of your business and maximising capitol. Also we will fully explain the costs involved ensuring you understand how the costs are enforced. At TML we ensure all charges have been considered so that your company gets the most competitive facility attainable.

The differentiation between the most competitive discounting company and the most expensive invoice discounting can be remarkable. For example when working with businesses who already use this service we have sometimes been able to half their costs.

How can discounting enhance my business?

  • Invoice discounting can supply up to 90% of the gross worth of your outstanding invoices.
  • When you start the facility this provides a cash injection to your business as cash is generated from the existing sales ledger.
  • On an ongoing basis it is a type of working capital that can smooth cash flow enabling you to pay suppliers and colleagues without the stress of late payments from customers.
  • Invoice discounting can be confidential therefore your customers are unaware of a lender‚Äôs involvement.
  • Your business stays in control your credit control function enabling you to have more customer contact.
  • As a type of invoice finance discounting can be cheaper avenue compared to invoice factoring.

The Theodore Management team recognise that as an owner of a business you may want your financial affairs to be kept confidential therefore you may need a confidential facility. We also appreciate that some businesses want to keep control of the credit control function to keep in touch with their consumers. We work with you to ensure that your business and its systems can qualify for such a facility.
What do I need to qualify for an invoice discount facility?

In the past invoice discounting was aimed at larger established businesses with an established profitable track record. However the criteria is now more relaxed. The basic criteria for an invoice discounting facility is:

-Your business sells to other businesses.
-Those sales need to be on credit terms.
-Invoices should be raised in arrears of delivery of those products and services.
-Your consumers should be credit worthy.
-A sustained audit trail should exist proving that products or services were both ordered and delivered.
-Your credit control function should be able to show a system for chasing overdue debts that is methodical and effective.

If you are in need for an invoice discounting facility or you want to review your existing facility contact the TML team.