I have worked in sales, credit and operations in a business owned by clearing banks, foreign banks and private businesses. Like factoring it involves the sale of invoices to the invoice finance provider by a supplier, but it is predominantly confidential (the customer is unaware of the assignment) and the supplier is responsible for the collection of sums outstanding.Īs you will see from my biography above, I have been involved with the invoice finance industry for 40 years. Jeff: Invoice Discounting is the predominant invoice finance product in the UK at some 92% of invoices assigned – over £260bn. New versions of discounting have emerged too over the years with the evolution of Payables and Buyer centric schemes, names debtor funding, Off-Balance Sheet solutions all attracting more businesses to invoice discounting and taking global turnover of all invoices factored and discounted to more than $3trillion. Technology and awareness of invoice discounting as evolved with some pace over the past decade with data extraction, on-line connectivity between the client, the discounter and credit reference agencies improving speed to market and decisions. I have spent more than 28 years in Invoice Discounting companies with offerings in many parts of the world and enjoyed seeing the increased use of this solution by businesses over the years. The beauty with invoice discounting is that it is a confidential service whereby the companies who buy goods/services and receive invoices for payment will not know that that the company selling its invoices to an invoice discounting firm are doing so. The invoice discounter (could be a bank or not bank discounter) can purchase the invoices from the seller business and immediately pay up to 85% to 100% of the invoice value with the outstanding balance being released to the seller business (less the discounters costs), once the buyer of the goods/services have made payment under the invoice. As a trading business, when you send out an invoice to your customer, a proportion of the total amount can become available from the invoice lender (discounter) providing an invaluable source of ongoing and immediate working capital bridging a liquidity gap until the invoice gets paid. Steve: Invoice discounting is an invoice finance facility that allows business owners to leverage the value of their sales ledger. Persiana: What is invoice discounting: Can you tell us more about your experience in the invoice discounting sector? Jeff: I am very pleased to have been involved with WOA from its very early stages and am proud to be a member of its Steering Panel. So far, we have been achieving this goal through product and theme-specific webinar building up to the very first WOA convention in October of this year. When Erik invited me to assist with input to his ambitions to build and launch the World of Open Account community, I wanted to support Erik and continue to share my learning and give back as much intellectual capital gathered over the year as I can to others. Steve: I have operated in open account solutions across many businesses over the past 27 years and have known Erik Timmermans through membership of many associations. Persiana: Please tell us about your involvement with the WOA community.
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