Invoice and Trade Finance

ABL Resourcing is an independent provider of invoice and trade finance solutions. We are not tied to any single organisation and can therefore provide exactly what you need. Our role is to understand your problems and challenges and then using our knowledge of potential funders select the most suitable provider.

Invoice Finance is a well established way for suppliers to improve their cash position and is now used by approximately 50,000 companies in the UK. It allows a supplier to receive immediate payment of its invoices. The provider of the Invoice Finance services will pay the supplier the value of the invoice immediately and will subsequently receive its payment when the customer settles the invoice.

There are three distinct forms of Invoice Finance;

Factoring - Using this approach the Invoice Finance provider takes on the responsibility of collecting payment.

Invoice Discounting - Using this method the supplier retains the responsibility for collecting payment and liaises with the customer as it currently does with regard to all aspects of payment collections.

Asset Based Lending - Businesses are no longer tied to simple factoring and invoice discounting. ABL funders not only lend against invoices but allow a business to supplement this borrowing by lending against other assets such as plant and machinery, stock and property.

The approach taken will depend on the trading position of the supplier and the preference shown by the Invoice Finance provider.

Ninety per cent of the market is taken up by the major high street retail banks, largely as a result of existing banking relationships. However, there are a number of well established providers as well as major international banks establishing receivables financing businesses in the UK that are more aggressive in the market and able to offer more attractive terms than those available from the high street banks.

ABL Resourcing understands the strengths of each bank and specialist provider and we are well positioned to match our clients to the most suitable offering. The Invoice Finance provider will make a monthly management charge and a finance charge for the service. ABL Resourcing acts as a broker and will advise you on the most suitable route to take and on all aspects of the selection and implementation.

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