Invoice Finance Jargon Buster
When a company is looking to put an Invoice Finance facility in place, there can be a number of terms which are new to them. We have created a Jargon Buster, covering the main terms which a company would come across. Below, you will find a few examples, as well as a link to the page itself!
1) Invoice Factoring - This product allows you to draw funds from the facility, whilst the provider handles your credit control for you.
2) Minimum Fee - The minimum cost of the facility (Typically over a 12 month period)
3) Pre-Payment Percentage – This is the maximum amount that will be lent against a single invoice or ledger.
4) All Assets Debenture – A charge over the business to protect the lender in the event of business failure or non-payment of invoices.
5) Credit Limit – The maximum amount you can borrow against a particular customer.
These are just a few of the terms relating to Invoice Finance. As mentioned, more of these terms can be found on our Jargon Buster page.