Cashflow finance1/29/2024 ![]() You can make considerable savings in administration costs, such as bank charges, sales accounting, stationery, postage, telephone charges, computer systems, staff time and other associated costs.The Benefits of these types of facilities are as follows: Bad debts can have a crippling effect on businesses, but our credit protection scheme will remove this worry. This has all the benefits of recourse factoring with the added advantage of 100% bad debt protection. Non-Recourse Factoring with Bad Debt Protection. We look after your customer accounts and provide you with up to 80% (a higher rate may be negotiated in certain circumstances) of the face value of your invoices and the balance when the customer pays. This facility offers all the benefits of invoice discounting but without the burden of running your own sales ledger. They look after all your customer accounts and chase slow paying customers - to ensure as much of your money is available to you as quickly as possible. The factor provides comprehensive Sales Ledger Administration, Credit Control and Collection Service uses state of the art computerised accounting systems. In addition the factor takes away the burden of running the sales ledger, safeguarding your cash flow through effective but sensitive supervision and collection. You receive the same prepayment facility as with invoice discounting. There is no set price for the service costs, it being totally dependent on the requirement and the workload involved.Īs a guide the service charge for invoice discounting ranges from 0.2% to 0.7% of annual turnover and the finance costs 1.5% to 2.5% above base rate.įactoring Full Service Factoring gives you peace of mind and much more. Most companies find that the finance costs are less than that of a normal overdraft facility. The costs of such a facility are divided into two areas, a service charge and interest on the finance. ![]() Receive “Cash on Delivery” but still allowing customers to retain the credit terms previously enjoyed.Īllows you to make better use of cash to achieve better credit terms and discounts.Īll of the Discounters and Factors used by M3 have access to internet based client communication systems allowing you to obtain up to date information and make enquiries on line. Solves cash flow problems, allowing management to concentrate on other business issues. The benefits of these types of facilities are as follows: For many clients this type of facility develops into a confidential arrangement, as the benefits of consistent cash flow take effect and profitable expansion gets underway. A prepayment facility is negotiated on your invoices of up to 80% (or higher in certain circumstances) and the balance is paid when your customers pay.Ĭonfidential Invoice Discounting is provided to established profitable companies with a strong balance sheet.ĭisclosed Invoice Discounting is provided to companies whose balance sheet is not so strong, and the discounters’ involvement is disclosed to your customers. You continue to receive your customers’ payments and manage your sales ledger and credit control activities. Typically such facilities can generate 80% of approved invoice value (sometimes a higher rate may be negotiated in certain circumstances) which is available within 24 hours of receipt of invoice details.Ī more comprehensive guide with regard to these facilities is given below: Many businesses are well run and fundamentally sound, yet constantly suffer from a debilitating shortage of cash which can eventually lead to the breakdown of profitable trading.īoth Invoice Discounting and Factoring are potential solutions to this problem and with our range of contacts we are able to tailor a facility to suit the prevailing trading conditions. Cashflow Finance | Invoice Discounting | Factoring
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