Invoice Discounting in 2012

The economic climate has continued to cause bank lending to become restricted, which has impacted small businesses access to adequate funding options. Since banks have become more reluctant to release capital, particularly to newer businesses or those requiring smaller loans, these companies have begun to seek funding through other alternatives. One such alternative financial strategy for small business funding is invoice discounting, a form of finance specifically beneficial for small businesses.

Invoice Discounting Process

When a company manufactures products or provides services, upon delivery, they provide the customer with an invoice. The invoice is considered evidence for the transaction. The customer usually pays the invoice for goods and services within a period of time - from 30, 45 or 60 days.

Firms that provide invoice discounting services essentially buy the invoice due at a small discount, in exchange for advancing cash to the company that originally provided the goods and services. The invoice discounting firm is then paid directly by the invoiced customer of the company that provided the goods or services.

Effective Funding Solutions

The reason that invoice discounting is effective is that the banking system has failed to maintain its status as the "go to" funding supplier for businesses in North America. There are fewer banks than ever available as a lending resource for small businesses. With less opportunities for companies to find capital, it has become necessary to seek other options which can fuel the economy.

AJ Martin & Co. Ltd

AJ Martin & Co. Ltd was started by a Andrew Martin an experienced Finance Director who understood the untapped resource small businesses were  missing out on through lack of working capital for growth

ContactAJ Martin & Co. Ltd today at 0845 643 4722 to find out how our seasoned invoice factoring professionals can help create the most efficient invoice discounting solution for your small business or company.