header curve
header curve

Invoice Discounting with Larger Customers

Invoice discounting with larger customers
03 Sep 2018
Share

Invoice discounting with larger customers

Suppliers who sell goods and services to larger concerns often find that the terms of their supply, limits or bans the process of factoring the debts to release funds into cash flow.

Cynically, this could be seen as a method these larger customers have used to control options available to their smaller suppliers.

Unfortunately, suppliers who sell predominately to major buyers find themselves in a cleft stick: they generally have to wait for longer periods to be paid and as a result are constantly short of cash.

Invoice factoring or discounting allows say 80% of a sales invoice value to be received when the invoice is issued and accepted by the customer; a specialist finance company or bank steps in to provide the discounting service.

The good news is that there is to be a change in the law to ban these restrictive practices and allow smaller companies to gain access to the funds locked up in their trade debtors.

Under the new proposed laws, any such contractual restrictions entered into after 31 December 2018, with certain exceptions, would have no effect and could be disregarded by small businesses and finance providers, which will help stop larger businesses from abusing their market position.

.
.

Download our free Ebook

By providing your email address, MCA will send you the ebook as requested.

* indicates required

View our Privacy Notice here.

You can also unsubscribe at any time by clicking here.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.

.

Claim my free place now!

By providing your email address MCA will register your place on our upcoming webinar.

* indicates required

View our Privacy Notice here.

You can also unsubscribe at any time by clicking here.

We use Mailchimp as our marketing platform and Zoom to host our webinars. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp and Zoom for processing. Learn more about Mailchimp's privacy practices here. Learn more about Zoom's privacy practices here.