- 07 May
Deal Completed - Invoice Discounting Recourse Period Improved
Only the other day I put up a piece about how invoice finance recourse periods work and how we may be able to help clients find improved recourse periods: Recourse Periods and this is a good example of how that can help a client.
The business in question had a restrictive recourse period that was being applied to their account of 90 days although their payment terms were 60 days from the end of the month in which the invoice was raised (60 days EOM). Hence, invoices were often subject to recourse (when the funding is removed once they exceed the recourse period), constricting their availability.
We were able to find them an invoice discounting facility with a 90 days EOM recourse period which will reduce the effect of the recourse period on their funding.