Invoice Discounting In London
What Is It?
Invoice discounting… it sounds intriguing to most people, but also rather mysterious. What is it and how does it work? Could it be of use to your business?
In essence, invoice discounting is a short-term form of borrowing in which a lender looks at the unpaid accounts due to your company and uses them as collateral for the loan. The amount of the loan would typically be around 80 percent of all the invoices that were owed that are less than 90 days old (because, over 90 days, there is a chance that they won’t be paid and therefore that the loan might be hard to pay back).
What this kind of borrowing does is speed up the process of getting paid from customers – the lender pays the money, and when the customer pays, the company pays the lender back. The lender will also charge interest on the loan, and usually a monthly fee to keep up with the arrangement as well, so it is important to take this into account if you want to look into how this kind of borrowing could help you. A budget for borrowing is always important. Invoice discounting is particularly useful for businesses working on a high-profit margin, as the additional charges can more easily be absorbed and even recouped through clever pricing.
You should also remember that this kind of borrowing can’t be done if the company assets in their entirety – including invoices – are already being used as collateral for another loan.
For more information on exactly how your company could benefit from invoice discounting, please don’t hesitate to get in touch with us at Bridging Finance 4U on 0800 288 9044 or email firstname.lastname@example.org. We can answer any questions you may have and help you decide whether this is the right option for you.
Bridging Loan Rates
Our bridging loan rates start from:0.65% pcm up to 60% ltv (1st Charge)
Residential & Commercial Bridging
Bridging Finance 4U are master brokers and packagers for all the leading bridging lenders and private funders in the UK.
Who We Are and What We Do
Bridging Finance in London, UK is usually used as an interim financing measure until permanent or ‘next stage’ financing is obtained. For example, the sale of an existing residential property may take longer than the required purchase deadline of a new property, bridging finance could therefore be used to bridge the period of time until your existing property is sold, at which point you may have the funds to pay off the bridging loan in full with the property sale proceeds or to use as a deposit to complete on a standard mortgage.
We can also offer finance for both Republic of Ireland and Northern Ireland. In some cases finance can be also obtained for prime locations in Europe for UK nationals whether living in the UK or overseas as an expat.
Why Choose Us?
Standard terms vary from lender to lender, but in general bridging finance is usually available for a period of between 1 and 24 months. It is sometimes possible to agree an extension beyond 24 months in some circumstances, but generally speaking bridging loans are meant as a short term financing measure, lasting months not a few years.
Instead of going to every lender on the market, just come to us, we do all the hard work for you. We have relationships with all the major lenders and private funders and speak directly to decision makers. Funds can be normally released between 3 and 10 days subject to legals.
We can usually obtain terms immediately and formal offers subject to valuation within 2 hours. If you are looking for speed and service then you have found the right company. Rates from 0.65% pcm but see our rates page for more info. We can also now lend on the value of Freeholds.
(Tailors property services)