Invoice Finance (Factoring & Discounting)

What is Invoice Finance (Factoring & Discounting)?

Invoice Finance is the collective name for a range of services which improve business cashflow by freeing up cash from your invoices as soon as they are issued and protect the business from the threat of late payers or bad debts.

Choosing the right Invoice Finance service

There are four key types of invoice finance services:

• Invoice Factoring (also known as Debt Factoring)
• Invoice Discounting
• Invoice Finance for exporters
• Credit Management and Credit Protection

Invoice (Debt) Factoring
HSBC sensitively manages your credit control and sales ledger and frees up your time by collecting payment from your customers. We advance up to 90% of the invoice value by the next working day, then HSBC Invoice Finance collects the debt and you receive the balance (less any charges) once your customer pays.

Invoice Discounting
We advance up to 90% of the invoice value by the next working day, then your business manages the debt collection and credit control.

Export Invoice Finance (International Services)
Export Invoice Finance releases cash from your export invoices as soon as they are issued. Our helpful staff can speak to your customers in a range of foreign languages, making international business as easy as domestic.

Additional Invoice Finance Services
Find out more about how your business could benefit from Credit management and Credit protection services.

Invoice Finance – advantages for you

• Freedom – Invoices act as security so there is often no need to pledge your personal or business assets.
• Peace of mind – through our payment under guarantee facility.
• Helps you get new customers – Enables you to react quicker to market opportunities whilst keeping your debtors under control.

Invoice Finance – advantages for your business

• Improved Cashflow – Up to 90% of invoice values paid the next working day.
• Flexible finance – Invoice Finance grows with your business; no need to keep increasing your borrowing facilities.
• Negotiate discounts – Obtain more favourable terms from suppliers by paying earlier.
• Manage risk – Help reduce current debtor levels.