- 13 Apr
Invoice Finance For Payments Via Direct Debit & Credit Cards
A customer that we were working with recently reminded me that some invoice finance companies are now able to collect debtor payments via direct debit and credit cards from business customers. This facility is not widely available but in recent years the number of invoice finance companies that are able to cope with payments received via direct debit mandates or credit card payments has increased.
The facilities work in the same way as any other invoice finance facility - when you raise your invoices the invoice finance company funds a proportion of the invoice value immediately giving you instant access to funds. When your debtor pays by direct debit the direct debit payment repays the funding against the invoice and the balance of the invoice is passed onto you less the charges for the invoice finance.
Similarly with a credit card payment - the payment repays the invoice finance funding and once again the balance of the invoice value is released to you less the financier's charges.
In this way some invoice finance companies are able to provide invoice finance and collect debtor payments via direct debits or credit card payments.