How much does it cost?
An Invoice Discounting Facility has two distinct cost elements:
1) The Finance Charge
This is comparable to the cost of an overdraft. Typical charges on the amount financed range from 1.5% to 3.5% over the prevailing base rate, with interest calculated on a daily basis.
2) The Service Charge
This is charged to cover the administration of the facility and typically will range from 0.2% to 2% of the gross annual turnover of the business.
Exact terms will, of course, vary between different lenders. Lenders each assess the risk of a deal according to their own criteria, and getting the best deal is as much about matching the right lenders to the applicant as anything else. That's where we can help, because we know the lenders personally and understand how they think.
Give us a call or fill in our enquiry form to see what kind of deal we can find for you, with no obligation.