Invoice Discounting

What is Invoice Discounting?

Invoice Discounting is one of the fastest growing financial services for
businesses worldwide.

Invoice discounting allows you to convert your trade debtors into immediate
cash.  Unlike factoring you retain full control of your debtors ledger which ensures
total client confidentiality.

Usually a cash advance of 80% of the outstanding invoices can be paid to you with 48 hours.  The remaining
20% of your invoice value, less fees, is paid to you when your debtor pays the invoice.

What fees are involved?

The fee charged by the Credit Provider per invoice is determined by the time taken for 80% of the value of debts invoiced and financed in any one month to be collected and banked into the Credit Providers account.
The faster the collection, the lower the fee, which is usually in the range of 2.5% - 4.5%.  This fee is only applicable to invoices financed.

How do I arrange Invoice Discounting?
 
Custom Finance can arrange an Invoice Discounting facility on your behalf.  An application needs to be prepared and submitted to the Credit provider for approval.   Facilities can usually be approved in 48 hours.  Typical information required to get a facility approved is:

1. statement of assets and liabilities for Directors
2. last two years financial statements
3. copy of most recent debtors and creditors ledger
4. a copy of several invoices sent to your customers 
5. a brief profile of the company and it's Directors
6. up to date information on ATO, PAYG and superannuation obligations
7. application form provided by the credit provider 

This information is used to establish the "heart" of the business and suitability for an Invoice Discounting facility.   Even if you are starting a new business, we may be able to assist you.

For more information on Invoice Discounting, please contact us












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