Spot Invoice Discounting for Business
Turn Unpaid Invoices into Immediate Cash Flow
Invoice discounting is an invoice finance or debtor facility that allows business owners to leverage the value of their sales ledger. The aim is to help companies with your cash flow especially if you offer 30, 60, 90 day terms for their clients. Invoice Discounting helps with funding portions of your unpaid invoices.
Fast Track your Business Cash Flow
Long customer payment terms, unexpected cash flow bumps or unforeseen business opportunities – just some of the times where invoice factoring makes good sense for business success. We make it simple, fast and flexible. Find out more and get in touch below.
- Immediate cash payment per invoice
- You choose when to use our services, and when to stop
- One fee only plus minor credit risk report disbursements
- No locked-in fixed term arrangements
- You do not pledge all your accounts receivables to us – only those that you choose; most clients select one, two or three invoices at a time
- No real estate or equipment security requirement
- Does not affect current or planned financing facilities
- Our service is professional and fully transparent
How it works
You select one, two or more invoices that you are waiting for your clients to pay you, and you sell them to us.
We typically advance you up to 80% of the invoice value right away.
When your client pays us direct, we’ll deduct our fee and remit the residual balance to you.
Difference between Invoice Discounting and Invoice Factoring ?
Invoice Factoring is generally for clients that do not have a credit management or collection service. FIFO Capital will help in this process of following up the outstanding invoices on your behalf.
Invoice Discounting relies on companies that are larger and have capacity to follow up invoices. All handling of collection and payment reconciliation is conducted in-house.
Right from the outset you will be fully aware of the way we provide our invoice finance facility: we jointly contact your client (of the invoice you sell us) and let them know of our involvement. This is a simple task and lets your client know that because your business is growing, we have been engaged to assist with funding this growth.
A fully disclosed transaction is when we (you and Fifo Capital) advise your client you have engaged our services and they make payment direct to Fifo Capital.
One Fee Structure
We have only one fee – a “discount” off your invoice.
Therefore, instead of giving your client a discount for prompt payment, you are giving us the discount for immediate payment. And, because you are not obliged to use our services again, this discount is simply a one-off.
Benefits to You
Complementing Bank Finance
Our working capital and cash flow options are designed to work alongside other forms of finance you may have in place – for those times when traditional finance isn’t geared to meet your needs.