Invoice Discounting
The principle of this service is the same as for factoring – funding is secured against the individual sales invoices of the business. However, with this scheme your company is responsible for the whole of the debt collection process. The funder provides a stream of funds based on the value of invoices raised. As the business sales grow, so does the availability of funds, without the need to apply for an increase in the limit as with a normal overdraft facility. In most instances the facility is confidential and your clients have no knowledge of the involvement of a banking institution. ECS can also provide a comprehensive credit insurance policy to cover your sales invoices against bad debt situations.
This service is particularly suited to established companies who not have their own credit controller or who employ the services of an external credit collection team to keep control of the sales ledger payments.