Factoring and Invoice Discounting

Benefits of TDS Commercial Business Advice and Finance's Factoring and Invoice Discounting Services include:

• Start ups - 90% of invoice value
• Phoenix and VA situations
• No annual charges
• No minimum charges
• No minimum turnover fees or terms
• Turnovers as low as £50,000 per annum
• No debtor concentration limits
• Pay only on monies used/drawn down
• Clients involved in the construction industry
• 100% of Sales Ledger with no Director's personal security

An Example of Invoice Finance

Company "A" imports branded clothing into the UK and sells the goods, inter alia, to 2 large high street retailers.

It receives 30 days credit from date of shipment from its overseas suppliers and the goods can be brought into the UK , delivered and invoiced to customers within 30 days.

It is selling to its UK customers on 60 days terms and needs funding against invoice in order to pay the suppliers on due dates.

The 2 large high street retailers dominate the sales ledger accounting for over 80% of Company A's turnover.

Mainstream debtor funders are generally looking for a spread of debtors in the sales ledger. Conventional Invoice Finance arrangements contain a limited high concentration clause, restricting the cash that can be advanced against the 2 largest customers in this example.

We have a Finance Company that are happy with the credit risk of the 2 major retailers and analysis of the historical trading record shows that there has been limited disputes and credit notes diluting the value of the security. The Finance House will accordingly fund the full amount of the debt and the requisite funding to Company A to pay its suppliers on the due dates.