Invoice Factoring
Invoice Discounting
Business Financing
Brumark
0800 505 3399
email
Invoice Discounting
Services
Disclosed confidential invoice discounting
Disclosed and confidential invoice discounting are the two main forms of invoice discounting and both attract lower service charges compared to invoice factoring. The main difference between confidential invoice discounting (CID) and factoring is the service is completely confidential. Your customers are completely unaware of the arrangement.
Confidential Invoice Discounting (CID)
Confidential invoice discounting is only available to well established businesses that are well run and have a history of profitable trading. They should be turning over £500,000 per annum, have a net worth of at least £30k and their sales ledger / credit control functions be fully computerised.
Typical service charges are 0.1% - 1% of turnover and interest costs of 1% to 2% over base.
Single Invoice / Selective Invoice Discounting
This option is ideal for companies dealing with large single orders or peak seasonal trading conditions. You simply nominate the invoice or invoices you want to discount or the individual debtor(s) you want to discount.
This service is provided by very few factoring companies. Advance levels vary from 80% to 95% of invoice value and the costs are higher than a standard factoring facility at 1% to 5% depending on the size of the invoice. The minimum invoice value is £1,000
Disclosed Invoice Discounting (DID)
Disclosed invoice discounting is a half way house between factoring and confidential invoice discounting, CID, and is for companies whose balance sheets are not quite strong enough for CID. The company still manages its own sales ledger/credit control functions but as with factoring its invoices include an assignment notice requesting the customer to pay the lender direct.
Fortunately for many companies this facility quickly develops into a confidential arrangement as the benefits of an improved cash flow take effect. Costs are slightly higher than for CID; a service charge of 0.35% to 1% of turnover and interest costs of 2% to 3% over base.
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