Compare Business Finance Options
Is invoice finance right for you? Some businesses are often unsure as to whether they should use factoring,
invoice discounting and
asset based lending. Obviously, no two businesses are the same, but this chart compares invoice finance with overdrafts and loans, two
financial solutions that businesses tend to use more frequently.
|
Invoice finance (Factoring and
invoice discounting) |
Asset based lending |
Overdraft |
Loan |
| Amount of credit available |
Up to 85% of your invoices available. The balance (minus our fees) is payable later |
Up to 60% of finished goods. Up to 80% of unencumbered plant & machinery. Up to 65% of property |
Can be limited to 50% of book debt |
Varies |
| Flexibility |
Your facility may grow in line with your sales |
For receivables and inventory, the amount available moves in line with your business |
Limits can be increased, subject to extra costs. Typically re-negotiated once a year |
Flexible business loans allow early repayments without penalties |
| Security required |
We will register a fixed fixed and floating charge on the assets of your company with priority over the book debts ahead of any other charge holder(s) |
We will register a fixed and floating charge on the assets of your company, with priority over the book debts and other assets we are funding ahead of any other charge holder(s) |
Typically requires security, which may include a charge on property |
Typically requires security, which may include a charge on property |
Security may be required. Product fees may apply.
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