Invoice Discounting
Invoice Discounting
Close Invoice Finance operates a straightforward factoring and invoice discounting service where most funds are available within 24 hours from receipt of your invoice details:
- You send details of invoices to Close
- Close credit the invoices to your account and make funds of up to 80% available
- You tell Close how much of the funds you want
- Close send you the money
- When the customer pays, Close send you the rest, less their charges
You will be kept informed of the balance of your account and can monitor it yourself via a secure internet website. There is some paperwork involved but it is kept to a minimum.
The costs are divided into two areas – a service charge and interest on finance. Most companies find that the finance costs less than a normal overdraft arrangement. There is no set price for the service – it depends entirely on your individual requirements and the workload involved for Close.
As a guide, for Invoice Discounting the service charge would be in the range of 0.2% to 0.7% of annual turnover and the finance at around 2% to 2.5% over Bank Base Rate.
Typically, the full Factoring service charge is between 1% to 2% depending on whether Bad Debt Protection is provided, with the finance charge at around 2.5% to 3% over Bank Base Rate.
You have nothing to lose by finding how much or how little the Close Factoring & Invoice Discounting service would cost your company. It will certainly improve your cash flow and a considerable amount of money in the process.
To request further information from Close Invoice Finance click here or call an adviser to discuss your options on 0845 226 2156