What are the different forms of Invoice Financing?

Click here for quotes from over 15 invoice financiers.

Recourse Factoring: In this form of invoice finance the lender handles the administration of your sales ledger and the collection of your debts. The lender will provide you with a cash facility of up to 85% of invoicing outstanding. The balance being paid to you as the debt is collected. Your business is responsible for any bad debt losses that may occur.

Non-Recourse Factoring: Is similar to recourse factoring but for an additional cost your company is protected against any bad debt losses that may occur.

Recourse Invoice Discounting: This form of invoice financing just provides you with the cash facility. You are responsible for all the administrative work of handling your sales ledger and collecting of your debts. Since you are handling all the administrative work, your clients will never realize that you are using invoice financing to improve your cash-flow. Like recourse factoring your business is responsible for any bad debt losses that may occur.

Non-Recourse Invoice Discounting: Is similar to recourse invoice discounting but for an additional cost your company is protected against any bad debt losses that may occur.

Other forms of invoice financing:

Confidential factoring: Is similar to factoring but all correspondence between the lender and your clients done on your company's stationary. Like invoice discounting your clients will never realize that you are fusing invoice financing.

Disclosed Invoice Discounting: Is similar to invoice discounting except that the fact that you are using invoice discounting is disclosed to your clients.

Trade Finance, Stock Finance, and Import Finance: This is a form of financing that complements invoice financing. It allows your company to finance raw or finished goods that you have pre-sold. Since this form of financing allows you to finance your goods prior at the time of purchase.

Click here for quotes from over 15 invoice financiers.