How Invoice Discounting works?
Discounting is available for those businesses that have strong collections and credit management capabilities in house, but wish to generate additional working capital from the debtor book.
Discounting facilities may be operated on either a confidential basis (with customers unaware of the Discounter's involvement), or they may be disclosed, with each customer being made aware of the invoice discounting facility.
Up to 85% of the invoice value is available immediately. Customer receipts are paid into a separate bank account, and you are credited with the balance less Discount and Service charges.
Invocie Discounting Charges:
As with a factoring facility there are two main charges payable:
- The Service or Administration Charge, which is expressed as a percentage of turnover, is generally between 0.1% and 1%.
- The Discount Rate, which is charged on the outstanding balance, can range between 1.5% and 3% over bank base rate.
© 2012 : Sterling Capital Reserve Ltd
Sterling Capital Reserve Ltd
Sterling House, 10 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG
Tel: 0115 984 9800 Fax: 0115 921 5550
ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EARLY REPAYMENT CHARGES APPLY. A BROKER FEE MAY APPLY.
Web Design Nottingham by Whatever Enterprises