Invoice factoring meaning
We are often asked about invoice factoring meaning and how it may differ to other types of invoice finance products. Invoice factoring is commonly used as a description for invoice finance agreements where the existence of the agreement and the assignment of debts from the business to the bank is made known to the end customer. It is therefore entirely disclosed unlike confidential facilities commonly known as invoice discounting or confidential factoring facilities.
In full factoring facilities, the bank or finance company providing the invoice finance carries out the administrative tasks such as credit control and running of the ledgers and accounts. It can be of huge benefit to businesses that don’t have a fully functioning or proper functioning credit control system and that is essentially outsourced to the bank or factoring company. In many other respects, invoice factoring is similar to other types of invoice finance in that the invoices are assigned entirely to the bank both on a present and future basis and advances made against those invoices as and when notified to the invoice finance provider.
Contact the invoice finance legal experts
Francis Wilks & Jones is one of the few legal firms in the country specialising invoice factoring and invoice finance. Our team has dealt with a wide range of issues arising from invoice finance matters and whatever your invoice finance related question please contact us now and we can help you.