Invoice Auction Sites VS Invoice Factoring

There is a company Axis Capital, a group of companies based in London, with a diverse array of products. This is just one. http://axis-capital.co.uk/

There are several advantages of Invoice Auction Sites. Invoice finance auction sites are a recent product launched within the world which has benefits over normal invoice factoring companies. The principles on which invoice auction sites work is the following:

The customer approves into an invoice auction arrangement with the company that runs an invoice auction site. This may involve the payment or a joining fee.

The customer can upload sales invoices to businesses that they wish to auction.

Funders and investors bid on the auctioned invoices stating the amount of finance they will provide, the period for which they will provide it and the fee that they will charge. The auction site will also charge a handling fee.

The client receives the funding and once the invoice is paid the payment repays the finance released by the invoice auction site.

The client is free to repeat this procedure for further invoices or they can choose not to.

Funders are bidding against each other in order to finance your invoices therefore you should get a competitive price quotation.

Normally there is no lock in or minimum contract period so you are free to leave the agreement at any time without the need to give notice of termination.

Flexible - you can select which invoice or invoices you wish to auction and there is no obligation for you to auction all of your invoices - selective invoice finance.

Security - some of the invoice auction sites require almost no additional security such as personal guarantees.

Now what is invoice factoring? Invoice discounting is for companies who would like to continue collecting payment from customers but would like funding a support. Basically, Invoice Discounting is, you continue to collect your own payments but a capital financing will fund you up to 90%-95% against your outstanding invoices. Invoice finance service can be tailored to support the individual needs of your business.

Invoice factoring can also be the answer for new and growing businesses when they can’t afford to wait 45 to 60 days to get paid by your commercial, government customers or any slow paying customers. You can get the cash you need as soon as you are ready to invoice.

How does an invoice factoring work, invoice your customer as normal. Then send a copy too and we will advance you up to 90%-95% of the invoice value within 48 hours. After that, you continue to chase payment of the invoice and once your customer pays, we send you the remaining amount minus the fees.

The advantages of Invoice Discounting in businesses are as follows:

·         You maintain your relationships with your customers

·         You chase your invoices yourself so you always know when they are going to be paid

·         You get up to 90%-95% of the value of each invoice usually within 24hrs, unlike the time you have to wait for your customers to pay you

·         You get funds much faster so you can run and grow your business by buying the goods you need to fulfil the latest order you’ve received

·         The funding grows with your business, so as you take on new customers our funding increases

·         Guaranteed working capital means you’ll be able to plan and negotiate better terms with your suppliers, e.g. early discounts because our funding will allow you to pay for goods earlier

·         You can offer extended payment terms to certain customers if needed because you have guaranteed cash flow

·         You can keep the relationship confidential so your customers don’t know we’re involved

So in other words:

·         Cash in your hands in as little as 24 hours

·         Working capital NOW

·         Up to 95% advanced

·         A company become your credit department

·         Payroll funding

·         Pre-approve your clients credit

·         Credit protection against bankruptcy and insolvency

Target Clients

·         Startups, Turndowns, Bank Exiting and or underperforming banking relationships

·         Personal Credit of Owner is not an issue; we look at our Client’s customer’s ability to pay

·         Fast Growing Client with sales of $5,000 – $5,000,000 per month

All Industries