How Debt Collection works

Factoring

Our Approach to Factoring

Debt Control are agents for both a Factoring Company and a Factoring & Invoice Discounting service. This service provides a quick and straight forward way to get cash into the business and can also ease administration.

We provide the following services:

Invoice Discounting

Invoice Discounting is a service that provides businesses with instant cash of up to a maximum of 90% of the value of the company’s debtor ledger.

The service is confidential and only the company and Debt Control Ltd will be aware of the arrangement. The business still retains control of the administration and management of the sales ledger and credit control functions of the business.

Invoice discounting is mostly suitable for well established companies that are financially sound and have a turnover of over £750k.

Our Approach to Invoice Discounting

• The client sends their customers invoices for completed work or delivered goods.
• The client sends a sales day book listing to the Discounter notifying them of the invoices.
• The Discounter pays up to 80% of the invoice values to the client immediately by telegraphic transfer.
• The client runs the sales ledger - telephone/statements.
• The client collects payment from the customers, banks the payments into a trust bank account held in the Discounters name and notifies the Discounter of the lodgement
• The Discounter collects the funds from the trust bank account and releases the balance of 20%, less charges, to the client.

In many cases there will be an existing sales ledger in place when the Invoice Discounting Agreement commences. In this case the Discounter can make available funding of up to 80% of the qualifying book debts, which in many cases can provide a healthy cash injection, even when existing bank overdrafts have to be repaid.