Glossary


Finance definitions

Product Definition Benefit
Hire purchase / Lease purchase A repayment facility where you can ultimately own the asset at the end of the repayment period. Fixed / variable interest rates, with repayments structured to suit your cash flow.
Finance lease A flexible method of funding a broad range of business equipment. A Finance lease offers all the benefits of ownership but without any of the burdens. Use of the asset with minimum initial outlay and payments can be arranged to suit your cash flow. Rentals can normally be offset against taxable profits.
Operating lease Particularly effective for high-value and specialised assets and vehicles. An operating lease guarantees the residual value of an asset, which means the repayments are lower than traditional finance. Rentals can be matched to your cash flow and can normally be offset against taxable profit. You can normally treat the asset as 'off balance sheet', subject to your auditor's approval.
Contract hire With this simple-to-manage option, the finance company can take care of the administration of the assets, leaving you to concentrate on more important business activities. Fixed monthly repayments help budgeting forecasts, and rentals can normally be offset against taxable profit. Assets may also be treated 'off balance sheet', subject to your auditor's approval.

Products

Invoice Discounting - What is it?

invoice discounting

Our Invoice Discounting service means that our providers can help you improve your cash flow by providing an immediate injection of cash against the value of your outstanding invoices. Then as you raise an invoice, our providers can release up to 85% of the value of that invoice within 24 hours. The remaining 15%, less a small service fee, will be paid to you once your customers pay.

This means your business has access to an ongoing supply of cash linked to your sales. So as your business grows so does the amount of funding available to you.

How Does Invoice Discounting Work?


Firstly, our providers provide your business with an initial injection of cash - up to 85% of the value of your outstanding invoices. Then as you raise sales invoices and credit notes you send them to us and we convert up to 85% of these into cash within 24 hours. The remaining 15% will be paid to you once your customers pay their invoices. This cash is then available to be used as and when you choose.

Your customers make payments to us via a specialist bank account.

Am I Suitable?


Your business needs to be turning over in excess of £1 million per annum and trading profitably.

Invoice Discounting - How Much Does It Cost?


Our services are tailored to your business so the fees will depend upon your specific needs.

There are two types of fee. The first is the cost of the money you use, which is extremely competitive when compared with other forms of finance. The second is a service fee.

What Next?


If you would like to speak with one of our Invoice Discounting specialists simply call us on

01427 668988