The 2 main differences between this solution and Invoice Factoring is that with Confidential Invoice Discounting your customers are unaware of our involvement and you carry out your own credit control.
The process is very similar to Invoice Factoring.
There are 3 parties to a Confidential Invoice Discounting agreement:
1) Your Business
2) Your customer
3) The Invoice Finance Company
The 1st part of the process is the same, where you deliver goods or services to your customer. You then raise an invoice and give credit terms to your customer.
You then send a copy to Calverton Finance.
We would release up to 90% of the invoice amount to you.
To keep the process confidential when your customer pays the invoice, the funds are paid to us in the same way as Invoice Factoring, however the difference is that they make payment into a trust bank account in your name, which we open for you at the start of the agreement.
When the customer pays, the remaining 10% or £1,000 is released to you, less our fees.
Also as part of the process you will retain the credit control function and continue this activity with your customers.
Once the arrangement is in place, as you increase your sales, your Confidential Invoice Discounting facility grows with you.
Coming soon. Our whiteboard video about how Confidential Invoice Discounting works.