Are you looking for a cost effective cash flow solution for your company or business? Are you looking for the best invoice discount or invoice factoring services around? If the answer is yes, then Invoice finance is most definitely what you are searching for.
Smart Factory Quote is an invoice discount and factoring service provider whose aim is to find a cash effective solution for your company or business. With many years of experience and thousands of clients throughout the country, Smart Factory Quote will always find for you, some of the best rates out there just from the convenience of one website.
For new clients, Smart factory Quote will always be willing to explain the various kinds of invoice factoring and discounts that they are currently offering. Invoice finance will also be willing to explain all of the costs that would be involved, how the entire facility generally operates and what are your roles and responsibilities so that you would be able to make informed decisions at all times.
What is invoice financing?
Invoice financing usually refers to a scenario where a third party usually agrees to purchase your unpaid purchases at an agreed fee. The invoice financers could be independent, a financial institution or may be part of a bank.
Invoice factoring also referred to as debt factoring usually entails a financier assisting an individual or a company with the management of the ledger and also collection of the money owed by the company’s customer by them. Invoice discounting is where the invoice financier will not be involved in the management of ledger book or collection of any of your debts but rather lend you some amount against the unpaid invoices which you will be required to pay at a fee.
Why is Invoice factoring and invoice discounting services from, Smart Factoring Quotes ideal for your company?
With invoice factoring, Smart Factoring Quotes will always take care of your sales ledger in turn saving you lots of time which you can channel into other businesses or into management of your current business. In addition, they will always credit check your potential customers hence identifying the ones that are most likely to pay on time. Smart factoring quotes will also be instrumental in striking better deals with your supplier.
Furthermore with invoice discounting, Invoice finance will always ensure at all times that it is done in discretion so that your customers will not be able to detect that you are borrowing against their own invoices. Invoice discounting from Smart Factoring Quotes is also essential for your business as it will always ensure that you maintain a closer relationship with all you customers as you will still be managing their accounts.
With the market currently consisting of thousands of invoice discounts and factoring companies that usually range from high street banks to small independent companies, with each of them having their very own criteria and capabilities, Invoice finance understands the general finance market and your capabilities and your requirements hence ensuring that you get the most suitable and cost effective solution for your company or business.
If you are looking for a more reliable and experienced invoice discount and invoice factoring service provider then you should definitely consider Invoice finance as your invoice discount and factoring service provider.
For a start-up company, Invoice factoring may be the answer to economic woes caused by a challenging time in bank financing. today there are more businesses turning to this type of funding. Why? Because these days it is often the only way they can get cash. Start-up companies without no proven track record or debt that may make them unattractive to banks when it comes to getting a loan. But factoring can get you cash in hand immediately. Today, factoring is experiencing a resurgence in popularity as many small businesses are still struggling from the recent economic financial crisis.
In general, invoice factoring allows a business to quickly access cash during the times they need it most. Primarily, this usually occurs when a business finds they are in a position to need money to get out of the predicament. Therefore, if a business does not have access to a line of credit, they still have an option when it comes to securing the needed funds. With this type of service, the credit of the business is not of concern but rather the customers.It is a practice that enables a small business to sell its accounts receivable invoices to a third party at a discount, which garners them immediate cash so they can finance their small business. This method helps them cover short-term cash needs during periods in which these needs exceed cash flow.
Keep in mind, however, invoice factoring is not a bank loan, so the business’ credit is never up for inspection but rather the debtor’s (i.e., the party named on the invoice) and there’s nothing to repay. This method of finance was once quite popular in early merchant banking activities.
Here are a few of the advantages to factoring:
Invoice factoring maximizes cash that is available to you, often providing more cash than a traditional bank’s lines of credit. There is also no line of credit amount because you are selling your existing invoices.
Cash flow becomes more predictable because in addition to speeding up the process by which your accounts receivable invoices are paid, invoice factoring can make managing your assets easier. Payments from factoring services are more predictable than when customers will pay their invoices.
Factoring is not a loan, so you are not taking on any new debt. It removes any restrictions as with traditional funding so you’re able to meet the day to day needs of your business as well as to take advantage of future opportunities. Factoring services will not ask for any equity stake in your company and the money is available immediately upon completion of work or billing. You remain in control of your business, not a bank or cosigner. Likewise, not incurring new debt will keep your credit score healthy. A healthy credit score can insure future healthy growth of your business.
A business owner with cash on hand gives them extra bargaining power. Suppliers often give discounts for purchases in bulk or for automatically debited accounts. Having cash enables you to take advantage of these offers, and saves money in the long run.
Invoice discounting is a great option for companies interested in securing a business loan with future, promised payments or invoices. This is a very good financing alternative for some companies. The cash flow crisis is a major challenge to the business firms. The availability of credit is a tough task for the business firms which are very crucial for the existence as well development of the firms. In the absence of the Invoice discounting, the firms might be required to pay higher amounts for the loans. There are many advantages with these types of loans. So, there is an increasing demand for these sorts of loans.
What is meant by Invoice discounting?
The Invoice Discounting is a process where the invoices that are due to the business are pledged for the purpose of the loan. The lending companies would examine the credit history of the people on whom the invoice is held. Once they are satisfied with the credit history, they shall advance a certain percentage of the amount in the invoice as the loan. In most cases it would range up to 90 % of the invoice value. If the credit history of the debtor is good, the more percentage of the amount can be advanced. The business can also expect competitive rates of interest. Once it fixes the amount to be given, the loan would be given in a couple of days. Once the invoice reaches the date, the lender would collect the invoice amount from the debtor of the business. Then it collects its fee out of it and remits rest of the amount to the business. Thus, the loan would come to an end.
There are many factors that determine the rates of interest charged, the loan amount disbursed and the fee charged. Most of the time, the credit history of the debtor would determine the rates. This is the basic advantage of these types of loans. The startup companies that don’t possess best credit score would find it very useful. So, they run the business in a smooth way and focus on the development of the company in a better way. The due date of the invoice, amount of invoice also plays a significant role in the process of getting a best deal.
There are many companies that offer these types of loans. One must select the best lender to get optimum results from the loan. One must select such a lender who offers the greatest amount of loan. The rates of interest must also be very reasonable and comfortable. Moreover, the lender should be able to disburse the loan in the lowest possible period. The optimum availability of cash to the business increases the credibility of the business in the customers. This brings greater reputation in the business and also helps in smooth functioning of the organization. Selecting the loan from a reputed and best seller would leave with the best deal. The best deal gives maximum credit at the lowest possible rates saving a lot to the business.