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The Guide to Flexible Invoice Discounting

invoice with arms and feet on a skateboard going fast down a hill with the letters 'FID' flying out the back

A strong cash flow position is a key characteristic of any successful business and yet cash flow challenges can leave even the most robust of businesses reeling – especially when these challenges feel like they are out of your control.

We work with firms in a wide variety of sectors, each which comes with its own unique obstacles – from seasonal firms that find themselves cash poor in the lead up to a particularly busy period to companies who want to invest in CAPEX; from manufacturers navigating uncomfortably long payment terms to businesses looking to acquire other businesses and management teams looking to buy out business owners.

More often than not, lumpy cash flow or a lack of readily available working capital are at the heart of these challenges, yet the answer to alleviating these pressures is fairly straightforward – many business leaders just aren’t aware of it.

What is flexible invoice discounting?

Flexible invoice discounting enables businesses to leverage against either their entire sales ledger, or a chosen pool of debtors, by using their unpaid accounts receivables as collateral for the facility.

Why would a business use flexible invoice discounting?

By freeing up the cash that is usually tied up in unpaid invoices – and the time that is usually spent chasing them – businesses are able to invest in growth, expansion, recruitment, acquisitions or whatever they wish, all while retaining responsibility for their sales ledger and invoice processing.

What are the benefits of a Growth Lending flexible invoice discounting facility?

Growth Lending’s flexible invoice discounting has the implied benefit of being flexible: there are no whole turnover agreements involved, so our clients can pick and choose which debtors require funding, keeping facility costs to a minimum.

Our facilities also avoid concentration limits or export caps; we see many strong, successful businesses denied funding by their banks simply because they have high order value with one customer. At Growth Lending, our highly experienced structuring team enables us to assess every facility on a deal-by-deal basis, tailoring our facilities to our client’s unique needs.

We also keep things smooth and swift – we insure all assigned debt as part of our funding package service charge, so clients need only deal with a single point of contact for both the funding and insurance. And we have a track record of fast and agile delivery, with many instances where clients have moved from application to credit indication in a matter of days.

What type of business is flexible invoice discounting for?

If you are a growing business registered in the UK, US or Ireland, with B2B invoices and debtor payment terms of up to 120 days, then flexible invoice discounting could be a great fit.

What next?

If you think your business is being hampered by cash flow challenges, get in touch with a member of our expert lending team, who will be happy to work out a bespoke solution to accelerate your growth.