Additonal Invoice Finance Facilities

Whilst Invoice Finance companies principally provide factoring and Invoice Discounting services, many offer additional valuable facilities that derive from their core products:

CHOCS (Client Handles Own Collections)

Known as an ‘Agency’ product by some providers, CHOCS acts as a hybrid process that lies between factoring and Invoice Discounting, and it can be offered in circumstances where a business is able to demonstrate effective credit control but cannot comply with other Invoice Discounting criteria. This could be for a variety of reasons such as insufficient financial stability, recent establishment of the company or lack of adequate sales ledger systems. CHOCS can be operated on a Disclosed or Undisclosed basis.

Collection Only

This type of facility can be offered in circumstances where a business does not require an Initial Payment facility but wishes to outsource its day-to-day sales ledger management and credit control.

Selective (Single Debtor) Factoring

When a business wishes to factor a single debtor or specifically named debtors rather than its whole turnover, Selective (Single Debtor) Factoring can be an appropriate option, providing the debts are of sufficiently large size.

Export

Some Invoice Finance companies offer factoring and Invoice Discounting against export invoices, with the level of service varying in accordance with the countries in which customers are located (as a rule, it is easier to obtain facilities if customers are in OECD countries). Factoring and Invoice Discounting will often only be available if Bad Debt Protection is part of the agreed package.

We have strong relationships with a number of well-established Invoice Finance companies that offer these services, and we will be happy to arrange introductions when our clients seek these facilities.