Recourse Factoring and Disclosed Invoice Discounting: Choosing the Right Fit for Your Business
At Partnership Invoice Finance, we understand that every business has unique needs when it comes to managing cash flow and maintaining control over financial operations. Two of our core services: Recourse Factoring and Disclosed Invoice Discounting. Each offer distinct advantages tailored to different business models and preferences. Both solutions provide access to the value of outstanding customer invoices before they are paid, but they differ in terms of control and credit management responsibilities.
Understanding Recourse Factoring
Recourse Factoring is designed for businesses that prefer to outsource their credit control functions. With this service, Partnership Invoice Finance not only provides funding against your invoices but also manages every aspect of your credit control, from the moment you notify us of a sales transaction to the point when the debt is paid.
Key Benefits
Comprehensive Credit Management: We handle all aspects of your sales ledger management, saving you time and resources.
Improved Cash Flow: Access the value of outstanding invoices before they are paid, ensuring steady cash flow.
Professional Collections: Our procedures rely on personal, regular customer contact rather than automated systems, fostering strong relationships and prompt payments.
This solution is ideal for businesses that want to focus on core operations while entrusting credit control to experienced professionals.
Exploring Disclosed Invoice Discounting
Disclosed Invoice Discounting is suited for businesses that wish to retain control over their credit management while still benefiting from improved cash flow. In this arrangement, you manage your own sales ledger and collections, while we provide funding against your invoices.
Key Benefits:
Maintain Control: You retain responsibility for credit control, allowing you to manage customer relationships directly.
Flexible Funding: Access funds as and when needed, supporting your growth initiatives.
Streamlined Processes: Our maintenance of a shadow ledger allows flexibility in funding and removes the need for monthly reconciliation.
This option is perfect for businesses with established credit control systems seeking to enhance liquidity without altering internal processes.
Making the Right Choice
Both recourse factoring and disclosed invoice discounting offer valuable benefits.
Recourse Factoring provides the business a hands-off approach to credit management. Ideal for businesses looking to outsource this function.
Disclosed Invoice Discounting offers flexibility and control, suitable for businesses with robust internal credit control systems.
At Partnership Invoice Finance, we are committed to helping you choose the solution that best aligns with your business needs. Our team is dedicated to providing transparent, flexible, and professional services to support your growth.
Ready to enhance your cash flow? Contact us today to discuss how our invoice finance solutions can support your business objectives.
Chris Falby
With over two decades dedicated to helping businesses in the South East thrive, Chris, Sales and Marketing Director, brings a wealth of knowledge in securing financial assistance for SMEs. His career began in mainstream banking, where he gained valuable experience managing advances. This foundation, coupled with his extensive network and expertise in independent funding, allows Chris to provide tailored invoice finance solutions that meet the unique needs of each client.