- FAQ's Introduction
- How does factoring differ from Invoice Discounting?
- What effect will using factoring have on my business?
- What effect will it have on my bank?
- Does it increase Administration?
- Will it work for my type of business?
- What happens if sales drop?
- What about a Seasonal business?
- Is there a minimum time I must contract to a funder?
- How much does it cost?
How does Invoice Financing/Factoring differ from Confidential Invoice Discounting?
Both services provide finance against debtor balances outstanding. In invoice financing/factoring the administration of the sales ledger and the collection of debts is handled by the funder. Because of this your clients are aware that you are factoring your debts.
Under an invoice discounting service, confidential or disclosed, the business continues to administer the sales ledger and the service can be invisible to the client.
