Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Invoice discounting

Options
  • 19-09-2016 2:08pm
    #1
    Tangled
    Registered Users Posts: 219 ✭✭


    I recently spoke to my bank (AIB) about getting an increased overdraft until the end of the year, to cover the period between now and Christmas with ramping up production for our busiest time. On our cashflow for the next few months there is generally a €20k hole at the end of the month until we get paid from suppliers at the beginning of the following month, so I was looking for an increase of this amount on our €15k overdraft.

    The bank are pushing me towards using invoice discounting, which we have looked at fairly comprehensively in the past and decided it wasn't for us. I have a meeting this week with them regarding this, and just wondered if anyone has recent experience (there's an old thread on boards about it which really put me off the idea), or any other suggestions of how to approach this with them?

    Many thanks!


Comments

  • Options
    #2
    Gloomtastic!
    Registered Users Posts: 8,480 ✭✭✭Gloomtastic!


    Invoice discounting is for life, not just for Christmas! :D

    Ask about alternative forms of credit - credit card(s) or a business loan (with no early pay back penalties).

    You could also tighten up your credit policy with your clients. Make sure invoices go out with the delivery. Follow up 7 days later to ensure they have been seen and signed off by the correct person. Then chase the bought ledger department to recieve payment within 30 days of issue.

    If you have any late payers, you could bring particular pressure on them to pay any outstanding amounts (offer them a discount for full payment).


  • Options
    #3
    Tangled
    Registered Users Posts: 219 ✭✭Tangled


    Gloomtastic! wrote: »
    Invoice discounting is for life, not just for Christmas! :D

    Yes, I think this is my biggest worry.

    As regards credit control etc, all is good there. We have a couple of large customers who we do the bulk of our business with, who pay like clockwork and these would probably be the basis of the invoice discounting.


Advertisement