Marine Group

Business Finance through invoice discounting and factoring. Due to the credit crunch and many banks' unwillingness to lend, businesses are struggling to raise money to finance their activities using traditional sources such as an overdraft, credit card or loan facilities. Given this situation, many companies are turning to sources of income such as factoring and invoice discounting. With factoring and invoice discounting, cash flow is improved by borrowing against invoices. Using this facility the company is usually able to access 80% of the invoice value immediately without having to wait for the normal payment period. There are three main ways to do this: - The process of invoice factoring generally involves a bank (normally known as the Factoring company) taking over a company's invoicing and credit control function. The factoring company makes credit available on raising the invoice. The name of the factoring company is stated on the invoice and the payment of the invoice is made directly to the factoring company. Payment collection and credit control are often managed by the factoring company. - CHOCCs stands for Client Handles Own Credit Control. This type of factoring is similar to full factoring however in this situation, the company still retains ... [more..]