Invoice Finance Using Your Own Bank Account
You may be worried about having to switch bank accounts if you used invoice finance? Normally either the payments have to be sent direct to the factoring company, requiring each customer to change their payment arrangements, or a trust account is used. Trust accounts are used in the case of invoice discounting, the account is set up and managed by the discounter and once again you have to tell your customers to pay into that account in future. Even with confidential facilities a trust account is normally used.
In a recent discussion with one of our invoice finance partners, they mentioned that they have a way of getting around this extra work. They will allow you to continue to use your own bank account and therefore avoid having to tell your customers to change their payment arrangements, reducing the amount of hassle involved. They do this by taking a charge over your bank account, which effectively becomes the trust account for your invoice finance facility.