Many businesses suffer from slow or late payment of invoices. Invoice Discounting from First Trust Bank is a quick solution to your working capital needs, providing a totally confidential debt-financing facility. With Invoice Discounting, we can help your business overcome cash flow problems by giving you immediate access of up to 80% of invoiced debt without affecting your relationship with your customers. While Invoice Discounting is primarily a working capital facility, it may also be used to fund transactions such as mergers, acquisitions, management buy-outs, management buy-ins, the retirement of a director and capital expenditure programmes.
How Invoice Discounting works:
Easy to operate
Simply invoice your debtors as normal and advise First Trust Bank of the sales details, via a secure internet site, on a daily, weekly or an agreed basis. If you don't need the funds straight away, you are only charged for funds as you use them. When you collect the payments from debtors, simply lodge them with First Trust Bank.
Companies with efficient systems easily accommodate First Trust Bank's requirements in the normal course of business. The main requirements are:
- Details of the new sales raised (in bulk)
- Monthly debtor aged analysis highlighting problem accounts, disputes etc.
- Monthly reconciliation of your sales ledger with First Trust Bank's summary of sales ledger.
Benefits of Invoice Discounting:
Designed to solve your cashflow problems
- Converts sales into cash
- Can release more funds than conventional sources of finance
- The availability of finance grows in line with the growth in sales
- Advantage can be taken of cash and bulk discounts from suppliers
- Suppliers can be paid promptly improving a company's payment reputation
- Allows you to expand your business and increase profits without the need to increase levels of capital investment
Your relationship with debtors is not affected, as the invoice discounting arrangement is not disclosed and remains confidential, so debtors are unaware of the funding facility.
Invoice Discounting is suitable for:
- Businesses which sell goods or services on credit to other businesses
- Businesses which invoice after goods/services are delivered
- Businesses which have a satisfactory quality and spread of debtors
- Businesses that are competently managed with efficient sales administration and credit management systems and an acceptable sales ledger accounting system
- Businesses that are profitable and have a positive tangible net worth
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- Price list for business customers
- Loans are subject to eligibility criteria and may be subject to an arrangement fee. Terms and conditions are available on request
- Applicants must be 18 years or over
- As a responsible lender First Trust Bank will only lend money based on our assessment of your ability to repay. Written quotations available on request
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