- 09 Dec
Protected Invoice Discounting Without Reconciliation
One of the invoice discounting companies that our invoice finance brokerage deals with has just launched a new improved version of its confidential invoice discounting product, with the addition of protection against bad debts . . . appropriate in the current climate!
The way that their confidential invoice discounting product works is that it directly integrates with their client's accounting package e.g. Sage etc. and this eliminates the need for the client to undertake any form of monthly reconciliation (which is a time consuming feature of many other invoice discounting services) - the reconciliation happens automatically. The sales ledger is uploaded to the invoice discounting company and initial payments are made providing improved cash flow. The invoice discounting company also maintain that the product provides more funding than other invoice discounting products as the product funtions "real time" and there is no waiting for a reconciliation to be received in order to release any reserves that may be held.
The improved version of the service is Protected in that the client also benefits from Bad Debt Protection, which is up to 100% cover against bad debts in respect of debtors that are granted credit limits by the invoice discounting company. It seems like a good option in the current economic climate!