professional financial management providing the right finance in the right hands at the right time

Debtor Book Finance

Firstly, the traditional routes of invoice finance. There are two types of invoice finance to choose from. Invoice factoring and invoice discounting. Both factoring and invoice discounting are services that allow your businesses to take advantage of your outstanding sales ledger and raise funds against the unpaid invoices before they are settled.

There are clear differences between factoring and invoice discounting:

With factoring our partner would take control of the sales ledger, chasing customers for payment and managing the credit control of the business. They would also be responsible for processing the payment of invoices, meaning that your customers are fully aware of your business contract with a factoring company. They are effectively your accounts department.

With invoice discounting your customers are unlikely to be aware of your relationship with a financing company and can be run completely confidentially. You maintain responsibility for the sales ledger, payment chasing and invoice processing.

The benefits of factoring and invoice discounting:

Although there are key differences between factoring and invoice discounting, the benefits are the same:

  • Releasing up to 90% of the value of outstanding invoices within 24 hours
  • Funding can be secured without requiring other assets and sometimes can be done without personal guarantees or debentures
  • Funding levels increase with your turnover making it the most scalable type of finance available
  • You get charged for what you use therefore if you have a quiet month your fees will be low as well
  • Bad Debt Protection available to insure you against losses
  • Free Credit Checks on your customers

What’s the best solution?

It depends on you, the nature of your business and your particular needs. Business size and the management resources of your sales ledger will be key factors in determining whether factoring or an invoice discounting facility is most appropriate for your business.

Typically factoring works better for smaller businesses. The main reason for this is the collection service and increased credit controls that factoring provides. For larger business with greater resource, invoice discounting is likely to be more appropriate and of course cheaper.

Our unique approach

We provide  a different solution to the time consuming, old fashioned method of invoice discounting.

Our solution for this problem is a facility that replaces traditional invoice discounting facilities with a more flexible, modern solution.

Instead of funding every individual invoice on your ledger separately and require debt verification, daily admin and all the other tedious tasks that come with invoice discounting, we work with our partner to agree a facility size in the form of a loan against the average value of your debtor book. Your debtor book is then underwritten for credit insurance where applicable to allow a far lower risk against bad debts for both yourself and our funding partner.

So what are the advantages?

  • Up to 80% of the whole debtor book can be funded straight away.
  • Once the facility is set up only monthly reporting is required. There is no daily workload like the traditional facilities
  • The facility is completely confidential and there will be no external agency’s controlling your debtor book
  • Legal aid debts can be funded where normally they cannot be factored
  • On traditional facilities there are additional charges if a customer is over 90 days late in paying. With this facility there are no charges if this happens and no hassle.
  • Facility can last as little as 3 months or as long as 3 years, the size can be increased or decreased during this period and extended if required.
  • No Personal Guarantees are required and only a debtor book debenture will be taken as security
  • An interest rate as low as 7% per annum
  • Repayments can be made as interest only with bullet payments at the end of the period or as amortisation payments.

To be eligible you must:

Be a non-seasonal business

Have an average debtor book at a value of £120,000+

Must be principally a B2B not B2C business is the trading name of assured capital & investments ltd registered in england & wales No.10283774aci money nor its parent company is regulated by the financial conducts authority, and as such does not offer any regulated advice, but it does refer clients to regulated advisers where required or requested.
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