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.
Quick Online Application
It will only take a few seconds & will not affect your credit rating.
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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.
Likewise, Factoring and Invoice Discounting
are useful options for:
For small and medium size businesses that need working capital to keep growing
Businesses with annual revenue of at least $1.5 million and who have at least 4 regular paying customers
For businesses that are coming out of a tough trading environment that need cash today to bridge the gap between invoicing 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
Numerous Other Industries
Our Customers Have
Rated Us “Great”
Extremely great service
The personal service & inter-action was extremely gratifying, as a result we were able to do business, which has put our company in a very positive position, I can't speak highly enough of these professionals and would do business with them again, definitely recommend the great service they provide to anyone.
Excellent and Professional
We were experiencing a cash flow issue due to rapid expansion in our business. We dealt with TIM and all the lovely staff were so helpful and within a short amount of time we were able to solve our issues and resolve our cash flow. I would definitely use TIM again if needed without hesitation. I would also recommend them without any doubt to anyone in need of their services.
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 timEX.
tim’s accounting interface is quick to activate and helps to manage money and pay suppliers.