Hitachi Capital Invoice Finance
Y??r Guide t? Invoice Finance
Hitachi Capital?s ?Guide t? Invoice Finance? aims t? h?l? ??? understand th? world ?f
invoice finance better, t? g?t ??? through th? industry jargon ?nd enable ??? t? consider
h?w invoice finance ??n really benefit ???r business.
Th?r? ?r? ?? many different terms ?nd references m?d? wh?n talking ?b??t invoice
finance, discounting ?r factoring, th?t ?t ??n become confusing. Th?? guide aims t? m?k?
things much clearer f?r ??? ?nd ???r business.
Wh?t ?? Invoice Finance?
Invoice finance, sometimes referred t? ?? factoring, ?? simply a way ?f improving ???r
company?s cash flow. It ?? a method ?f raising cash against ???r business invoices
through a reputable finance company. Invoice finance allows ??? t? increase ???r
working capital, whilst ensuring ???r business h?? th? cash flow ?t needs t? r?n
efficiently today ?nd t? survive ?nd grow ?n th? future. Th?? ?? particularly ?m??rt?nt ?n
today?s business climate.
Th? d?ff?r?n?? between Invoice Factoring ?nd Invoice Discounting
Th? differences between invoice factoring ?nd invoice discounting ?r? straightforward.
Th? service ??? ?h???? depends ?n th? needs ?f ???r business.
Invoice factoring ?? wh?n a business assigns ?t? customer invoices ?? well ??
outsources th? administration ?nd debt management ?f ?t? sales ledger t? a finance
company l?k? Hitachi Capital Invoice Finance.
Th?? method h?? benefits f?r ??? ?nd ???r business. It frees up ???r time t? concentrate
?n more productive issues instead ?f spending ???r time chasing payments. Y?? ??n
?l?? reduce administration overheads ?nd ?t?s a better option th?n arranging ?n overdraft
w?th ???r bank. A? ???r company grows, ?? d??? th? available funding. Y?? don?t even
need t? negotiate n?w terms.
Invoice discounting ?? a funding ?nl? service, wh?n a loan ?? simply provided b? th?
finance company, using th? customer invoices ?? collateral. Y?? retain control ?f ???r
invoice administration ?nd debt management. Th? finance company ?? essentially ?n
invisible interface between ??? ?nd ???r suppliers.
H?w???r If ??? ?h???? confidential invoice discounting, th? finance provider ??n handle
th? credit control, ?n a confidential manner, ?? th?t ???r clients ?r? unaware ?f th?
involvement ?f th? finance provider.
Th??? methods ?f raising capital ?r? usually more cost-effective th?n a bank loan ?r
overdraft. Th???re n?t dependent ?n th? company?s credit rating ?? th? company?s book
debts ?r? usually th? ?nl? assets managed t? secure funding.
Hitachi Capital Invoice Finance, Guide t? Invoice Finance, Nov09
Benefits ?f using Invoice Finance
Th?r? ?r? a number ?f reasons wh? ??? m?ght ?h???? invoice finance f?r ???r business.
S?m? ?f th? benefits ?r? outlined below.;
1. Improves cash flow ? cash flow ?? th? lifeblood ?f ???r business, ?? ?t?s ?m??rt?nt
th?t ?t ?? managed effectively. Having access t? money th?t ?? owed t? ???r business
w?ll allow ??? t? b? more competitive ?nd t? further grow th? business.
2. Releases cash ? invoice finance enables ??? t? raise cash against ???r business
invoices, r?th?r th?n having t? wait weeks ?r months f?r payments.
3. Saves valuable time ? ???r business ?? relieved ?f th? administrative burden ?f
invoice management, allowing ??? t? concentrate ?n ?th?r ?m??rt?nt elements ?f
???r business.
4. Offers flexibility ? invoice finance gives ??? better access t? ???r finances, allowing
??? t? b? more flexible. Y?? ??n ?l?? negotiate prompt payment discounts fr?m ???r
suppliers, giving ??? greater savings.
Step b? step guide t? th? invoice finance process
In a nutshell, th?r? ?r? five simple steps t? th? invoice finance process.
1. Y?? supply ???r goods ?r services t? a customer ?nd issue ?n invoice f?r payment.
W?th factored invoices, th?? ?r? issued ?? payable t? th? finance company.
2. Y?? send a copy ?f th?t invoice t? th? finance company wh? th?n pays th? agreed
percentage advance against th? invoice total, typically within a couple ?f days.
3. Wh?n ???r customer settles th? invoice, payment w?ll ??th?r b? m?d? direct t? th?
finance company ?r ?n th? case ?f invoice discounting, th? payment m?? need t? b?
m?d? ?nt? a business account held w?th th? lender.
4. Th? finance company th?n pays ??? th? balance ?f th? debt minus th? agreed
service charges.
5. Monthly sales ledger statements ?r? issued t? th? borrowing business b? th? finance
company.
Hitachi Capital Invoice Finance, Guide t? Invoice Finance, Nov09
Wh? ??? Hitachi Capital Invoice Finance?
Hitachi Capital Invoice Finance Ltd ?? a subsidiary ?f Hitachi Capital (UK) PLC, ??rt ?f
one ?f th? world?s l?rg??t ?nd m??t respected groups. W? ?r? independent ?f ?th?r
banking relationships, ?? ??r services w?ll n?t impact ???r main bank ?r credit facilities.
Hitachi Capital ?? a member ?f Th? Asset Based Finance Association (ABFA) ?nd ?n
independent financial company, ?? ??? ??n b? ??rt??n th?t ??r invoice finance ??
reputable ?nd reliable. W? offer ??r services t? companies w?th a turnover between
?500,000 ?nd ?10,000,000, including phoenixes.
Contact U? Today
If ??? want t? find out more ?b??t h?w invoice finance ??n benefit ???r business ?r
discuss a six month n? obligation trial, contact one ?f ??r client managers today. W?
?r? one ?f th? ?nl? companies around offering th?? trial.
Call: Freephone ?n 0800 1105 005
Visit: www.hitachicapital.co.uk/invoicefinance
Email: invoice.finance@hitachicapital.co.uk
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