What is invoice factoring?
Invoice Factoring is a type of debtor/invoice finance in which a business sells its accounts receivables ledger (invoices) to a third party (in this instance tim.) in return for receiving up to 90% of the invoice values in cash, with the balance to be received when your debtor pays (as per their normal 30 to 60+ days trading terms).
Invoice Factoring is commonly referred to as accounts receivable factoring, invoice factoring, invoice finance, debtor finance and even accounts receivable financing or invoice discounting.
The True Difference Between Factoring and Invoice Discounting
Factoring and Invoice Discounting are both financial services that can release the funds tied up in your unpaid invoices.
Strictly speaking, the difference between Factoring and Invoice Discounting lies in who takes control of your account receivables ledger and responsibility for collecting the monies from your debtors.
With Factoring, the provider of the upfront funds takes the role of managing your account receivables ledger, credit control and chasing customers for settlement of their invoices.
tim. does not do this.
With Invoice Discounting, provided by tim. your business retains full control of its own debtors ledger and you collect payment in the usual way.
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The benefits of Factoring and Invoice Discounting
- Releasing up to 90% of the value of your outstanding invoices within 24 hours of approval
- Funding can be secured without requiring other assets
- Cash is freed up to overcome cash flow problems or grow the business
- The level of funding available increases with your turnover
- By receiving up to 90% of your cash, you are able to pay supplier invoices promptly which increases your power to negotiate discounts
- In regards to Invoice Discounting, you attain the advantage of managing your own credit control and debt collection. Hence you are in complete control.
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See how much cash you could receive based on your receivables ledger, with our easy to use calculator.
this 90% could be
yours in 48 hours
this is the remainder of the invoice which will be paid when your customer pays
the discount rate you could pre-agree with tim.
Note: The above results are indicative only and should not be relied upon whatsoever as outputs are subject to change based on specific customer data, debtor strength, and other credit criteria required, which may result in higher or lower results than shown above.
Likewise, Factoring and Invoice Discounting
are useful options for:
Flexible funding to get your new company off the ground off the back of purchase orders or new debtors.
Putting your cash back to work for your business as soon as you’ve earned it.
Bridging the gap between invoicing your customers and getting paid.
tim. Funding Process
5 simple steps to secure funding
- No application or set-up fees
- No long lock-in contracts
- No property security required
- Choose only the invoices you want funded
- No fees as you add more debtors
- tim. checks the credit rating of your debtors and verifies each invoice
- Open and honest appraisals
- Get up to 90% of your invoices paid to you without any hold backs or fees
- Get your money within just 24 hours of approval
- The more you cash-flow with tim., the lower the discount fee can become
- The balance due on your invoices are paid to you when your client pays their invoice, less a pre-agreed discount rate
- tim. is paid when you are paid and not before
Who uses Factoring and Invoice Discounting?
Factoring and Invoice Discounting are particularly suited to businesses in areas such as:
Transport & Distribution
Cleaning, Maintenance and Landscaping companies
Our Customers Have
Rated Us “Great” On
The Invoice Market offered us a straightforward resolution to our cash flow issues which enabled us to continue to expand our business. Highly professional team, great service, prompt and easy to deal with.
Would recommend Invoice Market to anyone needing this type of service
Timeframe to set up an account was quick and easy. Professional and very friendly staff to deal with. Funds were made available with very little turnaround.
At tim., our invoice discounting solutions allow your business to get an advance against your accounts receivables ledger – either on a selective or whole ledger basis.
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business.
With tim. you get:
Fast funding: quick funding decisions and set-up
Hassle free experience: easy to use
Help in real-time: personal customer support
Straightforward costs: no upfront costs and no hidden fees
Make cash flow management easy by aligning your accounting software to tim.EX.
tim’s accounting interface is quick to activate and helps to manage money and pay suppliers.