With our invoice discounting product, you will receive advances of funds against outstanding sales invoices. Up to 85% of the value of your invoices can be paid out within 24 hours of raising them
Funds advanced under invoice discounting can be increased when a selection of assets is taken into consideration: We can provide funds against invoices, stock, plant and machinery, land and buildings. The exact mix of assets utilised will depend on your needs and the strength of security in the assets themselves.
This facility is provided confidentially, so your customers remain unaware of the financing arrangement and is suitable if you have good financial controls and a strong financial background.
How do you benefit?
By having funds available when you need them you can focus on running your business, without the constant pressures that inadequate cash flow can bring. Invoice discounting always provides funding against your debtors and can be extended to include a mixture of stock, plant and machinery, land and buildings.
Facilities are revolving, therefore you are not required to make capital repayments, once again maximising available cash flow. This additional headroom can put you in a position to seize business opportunities, giving you a real edge on your competitors.
When to use invoice discounting?
Many businesses looking for financial support still rely on traditional bank funding. However, take a moment to consider exactly what your company's financial needs are and how they can best be serviced.
Start by asking yourself a few simple questions:
- Do you sell products or services on credit?
- Do you find that you have to buy more quickly than you get paid?
- Do you have to hold high levels of stock?
- Does this tie up your cash?
- Are you in the process of developing new products?
- Do you find the required funds are tied up in unpaid invoices?
If you find yourself answering yes to any of these questions, then invoice discounting and asset based lending can maximise the cash available against many of your business assets, and release the funds you need, e.g., to finance further growth.
Asset Based Lending
Transaction funding such as mergers, acquisitions, MBO’s and MBI’s may well need additional headroom over and above Invoice Discounting. This can also be provided through an asset based finance facility by releasing funds against other assets, such as stock, plant and machinery, land and buildings.
Lloyds TSB Commercial Finance led the way in the development of asset based lending (ABL) in the UK and has over forty years experience of assisting businesses. Asset based lending is a flexible form of finance which allows businesses to secure funding against debtors (via invoice discounting and factoring), stock, plant and machinery and property. Lloyds TSB Commercial Finance is one of the leading UK players to provide this full asset based approach.
We will work with you to identify your cash requirements and to structure a flexible funding package to suit you. This could be to simply refinance your existing working capital, to fund periods of aggressive growth, to help finance a management buy-out or buy-in or indeed to fund an acquisition. We finance facilities from £250k to over £100million and are able to arrange larger, syndicated facilities.
The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.