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Factoring Discounting

A 5-Slide Guide to Invoice Factoring and Discounting

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Page 1: A 5-Slide Guide to Invoice Factoring and Discounting

FactoringDiscounting+

I N V O I C E

Y O U R   F I V E -S L I D E   G U I D E

A RANGEWELL PRESENTATION

Page 2: A 5-Slide Guide to Invoice Factoring and Discounting

RANGEWELL'S FINANCE GUIDES GIVE YOU THE TOOLS TO

SPEAK WITH AUTHORITY ON THE WIDE RANGE OF BUSINESS

FINANCE SOLUTIONS AVAILABLE IN THE UK TODAY.

STICK WITH US FOR THE NEXT FIVE SLIDES, AND WE'LL

TELL YOU EVERYTHING YOU NEED TO KNOW ABOUT

INVOICE FACTORING AND DISCOUNTING

STILL HAVE QUESTIONS? HEAD OVER

TO BLOG.RANGEWELL.COM

Page 3: A 5-Slide Guide to Invoice Factoring and Discounting

GET YOUR MONEY quickly...With invoice factoring and

discounting, businesses receive

a cash advance on unpaid

invoices from a lender. This

means they won't have to wait

30-90 days to get the funds they

need.

Page 4: A 5-Slide Guide to Invoice Factoring and Discounting

...BUT NOT FOR freeA lender will typically advance

85-90% of a business's unpaid

invoice, and charge a one-time

arrangement fee, a monthly fee,

and a charge based on the

amount of funding that was

advanced. This process is the

same in both invoice factoring

and invoice discounting.

RANGEWELL.COM

Page 5: A 5-Slide Guide to Invoice Factoring and Discounting

SO WHAT'S THE

difference?

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Page 6: A 5-Slide Guide to Invoice Factoring and Discounting

Invoice factoring means the

lending institution is responsible

for collecting payment on the

invoice.

Invoice discounting means that

the business will be in charge of

collections.

RANGEWELL.COM

Page 7: A 5-Slide Guide to Invoice Factoring and Discounting

BE CAREFUL OFbad debtIf the business' buyer defaults on

the payment, they could be

required to pay the debt they owe

the lending institution out of their

own pocket. Many institutions,

however, offer bad debt

protection - if the business' buyer

doesn't pay, they'll cover some or

all of the money lost.

RANGEWELL.COM

Page 8: A 5-Slide Guide to Invoice Factoring and Discounting

is the UK's most comprehensive,independent, and in-depth business

finance platform.

We provide curated finance solutionsfor businesses and their advisers.

For more information, or to sign up toour free-to-use service, visit

Rangewell.com