Working Capital Solutions | Single Invoice Discounting

How it Works

The client begins by identifying one or more specific Debtors to include in this facility.

Merchant West Working Capital Solutions purchases the current and future invoices raised to these Debtors, and the client cedes the rights and claim to the underlying debt to Working Capital Solutions.

Working Capital Solutions will advance up to 80% of the outstanding invoices, provided that the invoices are accompanied by Proof of Delivery/Performance.

This facility is disclosed, and each Debtor will sign a Tri-Partite Letter acknowledging the cession of the debt. From there the Debtors will pay the outstanding invoices into a Working Capital Solutions bank account, the details of which are provided in the Tri-Partite Letter. Working Capital Solutions charges a Discount Fee per 30 days, which is a percentage of the full invoice value, inclusive of VAT. Upon settlement of the invoices by the Debtors, Working Capital Solutions will release the 20% Retention money, less the applicable Discount Fees.

Benefits

  • Increased liquidity in line with your credit sales, enabling you to better take advantage of business growth opportunities.
  • Ability to settle trade creditors earlier and obtain higher settlement discounts.
  • Obtain more favourable prices on bulk or increased order quantities placed with your suppliers.
  • Access to immediate cash to help ease seasonal cash flow problems and requirements.
  • Converting unpaid invoices into cash, which prevents you from having to grant excessive early settlement discounts to your debtors to encourage earlier payments.
  • Expert credit control advice on the selected debtors.