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What is Asset Based Lending and how does it work?
Factoring and Discounting are services that provide increased working capital to growing companies by purchasing their sales invoices as soon as they are raised.
The factor will normally pay out around 80% of the invoice value immediately, and the balance once the debt is paid
charges for this service are a 'Factoring or Service fee' and a cost
of money 'Discounting Fee'.
the funding released can be effectively utilised in your business the
costs can easily be covered by increased profitability
factor will also carry out the credit control service, liaising closely
with you as to the best collections approach
is similar to factoring, the main differences being, you handle your
own credit control and the arrangement is often confidential (i.e..
your debtors don't know of the involvement of a factor.
Based Lending encapsulates factoring and discounting but offers a range
of other, more specialised financial services, such as stock finance,
floor planning for capital goods, transactional finance and trade finance
(both products supporting the purchase of goods.
The UK's market for these services is becoming increasingly complex with many players offering a wide range of what can sometimes be confusing products.
Alchemy can guide you to the perfect partnership.