What is Invoice Factoring?
Invoice Factoring is a type of debtor/invoice finance in which a business sells its accounts receivables ledger (invoices) to a third party (in this instance TIM) in return for receiving up to 90% of the invoice values in cash, with the balance to be received when your debtor pays (as per their normal 30 to 60+ days trading terms).
Invoice Factoring is commonly referred to as accounts receivable factoring, invoice factoring, invoice finance, debtor finance and even accounts receivable financing or invoice discounting.
The True Difference Between Factoring and Invoice Discounting
Factoring and Invoice Discounting are both financial services that can release the funds tied up in your unpaid invoices.
Strictly speaking, the difference between Factoring and Invoice Discounting lies in who takes control of your account receivables ledger and responsibility for collecting the monies from your debtors.
With Factoring, the provider of the upfront funds takes the role of managing your account receivables ledger, credit control and chasing customers for settlement of their invoices.
TIM does not do this.
With Invoice Discounting, provided by TIM your business retains full control of its own debtors ledger and you collect payment in the usual way.
Quick Online Application
It will only take a few seconds & will not affect your credit rating.
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The benefits of Factoring and Invoice Discounting
- Releasing up to 90% of the value of your outstanding invoices within 24 hours of approval
- Funding can be secured without requiring other assets
- Cash is freed up to overcome cash flow problems or grow the business
- The level of funding available increases with your turnover
- By receiving up to 90% of your cash, you are able to pay supplier invoices promptly which increases your power to negotiate discounts
- In regards to Invoice Discounting, you attain the advantage of managing your own credit control and debt collection. Hence you are in complete control.
Likewise, Factoring and Invoice Discounting
are useful options for:
For small and medium size businesses that need working capital to keep growing
Businesses with annual revenue of at least $1.0 million and who have at least 4 regular paying customers
For businesses that are coming out of a tough trading environment that need cash today to bridge the gap between invoicing customers and getting paid
TIM Funding Process
5 simple steps to secure funding
- No application or set-up fees
- No long lock-in contracts
- No property security required
- Choose only the invoices you want funded
- No fees as you add more debtors
- TIM checks the credit rating of your debtors and verifies each invoice
- Open and honest appraisals